jc200807h003 nrw master plan v1 0

Transcription

Amajuba District Municipality – 5-Year Strategic Management Plan for Reduction of Non-Revenue Water
AMAJUBA DISTRICT MUNICIPALITY
NON-REVENUE WATER SECTION
5-YEAR STRATEGIC MANAGEMENT PLAN FOR THE REDUCTION OF NON-REVENUE WATER IN THE
Table of Contents
Executive Summary
1.
Background
2.
Objectives of Non-Revenue Water Reduction Strategy
3.
Legislative Framework
3.1
3.2
Legal Framework
Policy Framework
4.
Limitations of Strategic Plan
5.
Research Framework
5.1
5.2
6.
Non-Revenue Water Within Amajuba District Municipality
6.1
6.2
6.3
6.4
7.
International Best Practice
National Best Practice
Definition and extent of Area of Operation
Relationships with Other Departments
Non-Revenue Water Areas of Influence
Profile of Non-Revenue Water Section
Review of Non-Revenue Water Activities to Date
7.1
7.2
7.3
7.4
7.5
7.6
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Non-Revenue Water Reduction Activities
Quantification of Costs
Estimation of Benefits
Water Balances per Financial Year
Key Performance Indicators per Financial Year
Selected Trends and Trend Analysis
Page 1 of 74
8.
Current Situation
8.1
8.2
8.3
8.4
8.5
Water Balance
Key Performance Indicators
Demand Projections
Budget Availability
Non-Revenue Water Activities
9.
Key Challenges Identified in Implementing Non-Revenue Water Activities
10.
Strategic Plan Approach and Methodology
10.1
10.2
10.3
10.4
10.5
11.
Non-Revenue Water Reduction Philosophy
11.1
11.2
11.3
11.4
11.5
12.
Asset Management Philosophy
Asset Management System
Operations and Maintenance
Funding Strategy
14.1
14.2
14.3
15.
Option 1 – Current Funding Limitations
Option 2 – Additional Funding Availability
Financial Year Work Packages
Procurement Packages
Asset Management
13.1
13.2
13.3
14.
Water Balance Components Description
Interventions per Water Balance Components
Benefits of Non-Revenue Water Reduction
Non-Revenue Water Reduction Prioritisation
Budget Focus Areas
Non-Revenue Water Reduction Programme
12.1
12.2
12.3
12.4
13.
Overall Target for Non-Revenue Water Reduction
Supply System Description and Operation
Identification of Supply Areas
Supply Area Characteristics
Non-Revenue Reduction Model
In-House Resource Development
Resource Management Strategy
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15.1
15.2
15.3
In-House Resource Development
16.
Quality Assurance
17.
Monitoring and Evaluation
17.1
17.2
17.3
17.4
18.
Monthly Reporting Requirements
Annual Reporting Requirements
Programme Review
Water Auditor
Performance Management
18.1
18.2
Internal
External Service Providers
19.
Risk Management
20.
Communication Management
21.
Conclusions and Recommendations
Annexures
A
B
C
D
E
F
G
H
Current Water Balances
Projected Water Balances – Without Intervention
Projected Water Balances – With Intervention
Interactive NRW Reduction Model
NRW Reduction Intervention Work Plan Template
NRW Monthly Reporting Template
NRW Risk Management Schedule
NRW Communication Plan
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Executive Summary
Introduction and Background
The Amajuba District Municipality (ADM) recognised the need to focus on the reduction of Non-Revenue
Water (NRW) as part of its overall Water Conservation/Water Demand Management strategy as well as
its contribution towards the objectives of the National Water Conservation/Water Demand
Management (WC/WDM) initiatives currently underway throughout the country in support of the
protection of a scarce water supply resource.
Non-Revenue Water, for the purposes of this Master Plan, is defined as the difference between System
Input Volume (SIV) - determined as the volume of water produced/bought for supply to a distribution
system - and the total Billed Authorised Consumption (BAC). This Master Plan is concerned with volumes
only – revenue collection and debt analysis did not form part of the scope of this appointment.
It was therefore decided to prepare a strategic Non-Revenue Water Reduction Master Plan that covered
a 5-year outlook in terms of minimising losses through the ADM area of supply on behalf of the Water
Services Provider (WSP). The objectives of this Master Plan were s follows:
•
•
•
•
•
Determine the baseline situation in terms of water balances for each supply system in
accordance with international and national best practice;
Identify areas of possible NRW reduction, by water balance component and per supply system,
prioritise these in order of impact and prepare a consolidated NRW Reduction Intervention
programme;
Establish targets in terms of NRW by volume, supported by Key Performance Indicators and
budget/funding requirements;
Address the internal requirements necessary for the successful implementation of a NRW
reduction programme in terms of resources, systems and critical success factors; and
Develop a software model that allowed ADM the flexibility to determine intervention impact,
targets and budget requirements to suit changing needs and focus areas.
The responses to these objectives have been included in this Master Plan.
Summarised Non-Revenue Water Reduction Framework
This Master Plan is strategic in nature and therefore by definition cannot be used as an operational
document. It provides a framework within which implementation can take place and advocates an
intervention strategy, achievable targets and budget requirements. It is based on a desktop study
without the valuable input provided by detailed field measurements. Although every effort has been
made in terms of validating the accuracy of the information used in the preparation of the Master Plan,
much of this information has been gained from multiple sources and has had to be trusted without
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independent verification. This aside, there is a high level of confidence in both the figures used and the
recommendations made.
Any NRW reduction strategy and implementation programme must take cognisance of both local and
national imperatives, regulations and guidelines. In this regard, a holistic approach to the reduction of
NRW from a strategic (5-year) to detailed operational (1-year) focus has been proposed, summarised in
Figure 1. This constitutes the overall framework within which the NRW reduction programme should
take place.
It must also be noted that this Master Plan has been of singular focus in terms of reducing NRW – it has
not addressed the larger issues affecting water conservation, which must be borne in mind when
interpreting the contents of the Master Plan.
Figure 1: Amajuba District Municipality Non-Revenue Water Reduction Programme Implementation
System Characteristics
The Master Plan identified a total of 4 individual systems across the entire ADM that were adopted as
the basis for all calculations, analysis and recommendations. These systems were:
•
•
Utrecht
Dannhauser
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•
•
Durnacol
Hattingspruit
Newcastle Local Municipality, although it falls with the ADM area of jurisdiction, is a Water Services
Authority in its own right and therefore has been excluded from this Master Plan.
Figures, analyses, targets and KPI’s were developed for each individual supply system, but the
summarised figures only have been included in the Executive Summary. Key ADM characteristics are as
follows (based on July 2009 data):
Total estimated length of mains
Total number of formal connections
Total number of standpipes (estimated)
Estimated population
Average supply pressure
Service connection density
Average daily demand (kl/connection/day)
Average Year-on-Year Growth in Demand
:
:
:
:
:
:
:
:
153km
3 128
1 527
126 000
60m
20 connections/km
0,46
1,4% (from 2002/03 to 2008/09)
Current Situation
In terms of the adopted international standard for the presentation of water volumes, the water
balance for the entire ADM area of supply for the 2009/10 financial year (within the accepted unit of
kl/year) has been included in Figure 2.
The adopted Key Performance Indicators (KPI’s) for the entire ADM area of supply, based on the figures
used in the compilation of the 2009/10 financial year water balance are as follows:
Inefficiency of Use of Water Resources
Total Water Losses
Current Annual Real Losses
Apparent Losses
Non-Revenue Water by Volume
38,1%
189,9 m3/service connection/year or
520,2 litres/service connection/day
60,4%
Comparing these figures to the international data set, the KPI’s for ADM are below average.
In terms of financial indicators, and based on the combined individual unit cost of water per system, the
annual costs of the water balance components for the 2009/10 financial year were as follows:
Unbilled Authorised Consumption
Apparent Losses
Real Losses
Total Non-Revenue Water
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R 919 000
R 398 000
R2 255 000
R3 570 000
Page vi
Billed Authorised
Consumption
779 952 kl/year
±10,0%
Authorised
Consumption
1 088 302 kl/year
±9,8%
Unbilled Authorised
Consumption
360 350 kl/year
±23,4%
System Input
Volume
1 970 123
kl/year
±10,0%
Apparent Losses
132 573 kl/year
±118,2%
Water Losses
883 821 kl/year
±18,8%
Real Losses
751 248 kl/year
±7,3%
Billed Metered
Consumption
779 952 kl/year
±10,0%
Billed Unmetered
Consumption
- kl/year
±0,0%
Unmetered Municipal
Consumption
19 701 kl/year
±20,0%
Unbilled Unmetered
Consumption
286 649 kl/year
±25,0%
Illegal Connections
116 974 kl/year
Metering Inaccuracies
15 599 kl/year
Mains Leaks
539 863 kl/year
Reservoir Overflows
7 512 kl/year
Service Connection Leaks
203 873 kl/year
Revenue Water
779 952 kl/year
±10,0%
Non-Revenue
Water
1 190 171 kl/year
±15,2%
Figure 2: Amajuba District Municipality – Consolidated Water Balance for 2009/10 Financial Year
Future Projections
In terms of projecting 5 years forward in terms of water balances, the following two water balances
were prepared:
•
•
Scenario 1: Situation in Year+5 without any NRW reduction intervention taking place, but taking
into account normal system growth (directly due to demand) and system attrition (deterioration
of infrastructure condition)
Scenario 2: Situation in Year+5 with NRW reduction intervention carried out per water balance
component, aimed at either reducing real or apparent losses, and simultaneously improving all
billed volumes. This was determined using empirically-based volume recovery factors and/or
unit consumption factors and would determine the maximum practically achievable NRW
volumes.
Scenario 1 (no intervention) determined that System Input Volume across the entire ADM area of supply
would increase approximately 43% to 2 827 Ml/year and NRW by volume would increase approximately
56% to 1 865 Ml/year within the 5-year Master Plan period. The Inefficiency of Use of Water Resources
would increase to 46% and NRW by Volume increase to 66%.
A detailed NRW reduction intervention programme was determined and the maximum practical
reduction of NRW by volume across each of the 16 supply systems calculated. This was based on known,
achievable factors bearing in mind the 80:20 rule on obtaining maximum impact with the optimal
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amount of effort. The projected water balance based on these intervention factors for the end of the 5year Master plan period has been included in Figure 3 (these figures exclude any savings that could be
obtained from mains replacement):
Billed Authorised
Consumption
1 256 345 kl/year
±10,0%
Authorised
Consumption
1 374 326 kl/year
±9,3%
Unbilled Authorised
Consumption
117 981 kl/year
±22,4%
System Input
Volume
1 594 824
kl/year
±8,1%
Apparent Losses
49 434 kl/year
±10,0%
Water Losses
220 498 kl/year
±6,4%
Real Losses
171 064 kl/year
±7,7%
Billed Metered
Consumption
1 256 345 kl/year
±10,0%
Billed Unmetered
Consumption
- kl/year
±0,0%
Unmetered Municipal
Consumption
12 694 kl/year
±20,0%
Unbilled Unmetered
Consumption
105 287 kl/year
±25,0%
Illegal Connections
24 307 kl/year
25 127 kl/year
Mains Leaks
122 557 kl/year
Reservoir Overflows
1 711 kl/year
46 796 kl/year
Revenue Water
1 256 345 kl/year
±10,0%
Non-Revenue
Water
338 479 kl/year
±8,8%
Figure 3: Amajuba District Municipality – Projected Water Balance for Entire Area of Supply Based on
Roll-out of NRW Reduction Intervention Recommendations
The adopted Key Performance Indicators (KPI’s) for the entire ADM area of supply, based on the figures
used in the projected water balance are as follows:
11%
21%
Comparing these figures to the international data set, the projected KPI’s for ADM are good/fair.
Should the recommendations of the NRW reduction interventions be accepted, the following benefits
would be realised:
•
•
•
•
Reduction of System Input Volume by 23,5%
Reduction of Non-Revenue Water by Volume by 351%
Reduction in Unbilled Authorised Consumption by 305%
Increase in Billed Authorised Consumption by 161%.
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For comparison purposes, the relevant KPI’s from each of scenarios compared to the baseline have been
included in Table 1:
Key Performance
Indicator
NRW by Volume %
Inefficiency of Use %
Current (2009/10)
60,4
38,1
Without Intervention
(+5 years)
66,0
46,2
With Intervention (+5
years)
10,7
21,2
Table 1: Amajuba District Municipality – Comparison of Projections With and Without Non-Revenue
Water Reduction Interventions
Non-Revenue Water Reduction Targets
The maximum practical achievable NRW by Volume for the entire ADM area of supply has been
established as 21% - it will become prohibitively expensive and require a disproportionate amount of
time, resources and budget to achieve any better target than this. Based on the predictive model that
was prepared as part of this investigation, the cost of all interventions required to realise this target has
been determined as approximately R27,6 million when discounted back to NPV.
A cost:benefit curve, based on the predictive model, has been included in both the Master Plan and
spreadsheet model to assist with the determination of the benefit of any NRW reduction programme
based on budget/funding constraints.
Key Challenges
A number of key challenges were identified both during the preparation of the Master Plan as well as for
the roll-out of the proposed NRW reduction interventions. These are summarised as follows:
•
•
•
•
•
•
•
•
•
Inadequate background data on individual supply schemes/systems (in some instances even
simple system characteristics were difficult to obtain)
Lack of reliable baseline field measurements such as flow (System Input Volume and Minimum
Night Flows) and pressure
Lack of understanding of current best practice, definitions, theory and application of theory
Certain confusion around the extent, constitution and reliability of Billed Authorised
Consumption volumes
Lack of management (and number) of external professional service providers, who ostensibly
operate in isolation
Lack of understanding and implementation of appropriate design standards that could minimise
NRW volumes even at design stage
Dedicated Client capacity constraints and reliance on external Consultants
Lack of clarity on available MTEF budgets for NRW reduction activities
Market-related constraints for specialist service providers (such as leak detection contractors)
due to current industry boom.
A standard risk assessment and mitigation schedule has been prepared in response to these challenges
and included in the Master Plan.
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Critical Success Factors
In order to ensure the success of this NRW reduction programme and to meet the proposed targets
contained in this Master Plan, there are a number of critical success factors. These were identified as
being:
•
•
•
•
•
•
•
Recognition of NRW reduction as a major focus area of the Water Service Provider and Water
Service Authority by all Client Departments, including and especially Operations
Recognition of the need to have sufficient dedicated internal resources available to be focused
on ensuring the implementation, sustaining, monitoring and evaluation of NRW reduction
intervention
Embracing the principles and objectives as Water Conservation/Water Demand Management
Securing the requested funding of approximately R28 million over the next five financial years
Implementing accepted best practice in all aspects of NRW reduction, including
data/information management
Not falling into the trap of treating the NRW reduction interventions proposed in this Master
plan as a once-off capital investment – any intervention has to be sustained and the ongoing
operations and maintenance must be budgeted for and carried out
Focus must be on high impact interventions irrespective of any external (political) influence that
could be brought to bear on the proposed roll-out strategy.
Resource Management
An analysis was carried out on the current structure and resource allocation in the Client organisation in
terms of managing NRW reduction intervention programmes. Currently, the management of any NRW
activity is undertaken by one resource. It was deemed imperative that the profile of NRW be elevated to
as senior a level as possible within the Client organisation and that, if possible, dedicated focus on NRW
activities be allowed from this Directorate without distraction from other initiatives.
In terms of the actual resources to be used, it is proposed that a training and mentorship programme be
adopted and implemented through the programme management phase of the roll-out of the NRW
reduction interventions. With due recognition of the constraints faced by the public sector in attracting
and retaining skilled resources, it was proposed that a form of “public private partnership” be adopted
to ensure the success of the proposed NRW reduction strategy.
Interactive Software Model
In accordance with the overall brief, an interactive predictive model was developed in Microsoft Excel
that allows flexibility to the Client in determining the output from any number of scenarios on a per
system and overall ADM perspective. This has been appended electronically to the Master Plan and
allows for the following to be modelled:
•
•
•
•
•
System Input Reduction modelling (budget-dependent)
Billing Improvement modelling (budget-dependent)
NRW Target establishment, determining target NRW % by volume and budget requirements
Maximum achievable NRW % by volume
NRW target establishment by cost:benefit ratios
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The key conclusions and recommendations contained in this Master Plan are summarised as follows:
•
•
•
•
•
•
•
•
It is unrealistic for ADM to set a medium-term target of less than 21% by volume
An economically optimal target is 21% NRW by volume within a budget of approximately R28
million (including any mains replacement)
An annual operations budget of at least R500 000 per annum be set aside to ensure the
sustainability of all pressure management intervention as well as targeted leak detection and
repair activities
The largest impact on NRW volumes is pressure management in Utecht. Any available budget up
to R1 million should be used for this purpose
New design standards must be formalised and implemented (new pressure regimes, pipe
material, etc)
All unmetered connections, including all currently unmetered standpipes, must be metered and
registered as connections as a matter of urgency
The internal profile of Non-Revenue Water reduction and the Directorate: Engineering Services
must be raised to such a level as to demonstrate corporate and operational support and buy-in.
Without this, the success and impact of the entire programme may be compromised
The recommendations as contained in this Master Plan for the roll-out of the NRW reduction
interventions be approved for implementation
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1.
Background
The Amajuba District Municipality (ADM) recognised the need to focus on the reduction of NonRevenue Water (NRW) as part of its overall Water Conservation/Water Demand Management
strategy as well as its contribution towards the objectives of the National Water
Conservation/Water Demand Management (WC/WDM) initiatives currently underway throughout
the country in support of the protection of a scarce water supply resource.
Non-Revenue Water, for the purposes of this Master Plan, is defined as the difference between
System Input Volume (SIV) - determined as the volume of water produced/bought for supply to a
distribution system - and the total Billed Authorised Consumption (BAC). This Master Plan is
concerned with volumes only – revenue collection and debt analysis did not form part of the scope
of this appointment.
It was therefore decided to prepare a strategic Non-Revenue Water Reduction Master Plan that
covered a 5-year outlook in terms of minimising losses through the ADM area of supply on behalf of
the Water Services Provider (WSP). The objectives of this Master Plan were s follows:
•
•
•
•
•
Determine the baseline situation in terms of water balances for each supply system in
accordance with international and national best practice;
Identify areas of possible NRW reduction, by water balance component and per supply
system, prioritise these in order of impact and prepare a consolidated NRW Reduction
Intervention programme;
Establish targets in terms of NRW by volume, supported by Key Performance Indicators
and budget/funding requirements;
Address the internal requirements necessary for the successful implementation of a
NRW reduction programme in terms of resources, systems and critical success factors;
and
Develop a software model that allowed ADM the flexibility to determine intervention
impact, targets and budget requirements to suit changing needs and focus areas.
The responses to these objectives have been included in this Master Plan.
2.
Objectives of Non-Revenue Water Reduction Strategy
The objective of the preparation of the Non-Revenue Water (NRW) Master Plan is to provide both
strategic and operational framework to the Water Services Department to implement its NRW
reduction interventions over a five year period. The framework for the preparation and
implementation of a NRW master plan for the Amajuba District Municipality will include the
following:
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a)
Desktop assessment of existing areas of supply from bulk conveyance per supply
system;
Review and documentation of previous NRW reduction activities, since 2004, which will
include;
• Review of activities carried out to date (nature, cost and benefits)
• Preparation of past and current (annual) water balances in IWA format with 95%
confidence levels
• Determination of annual costs incurred to date through NRW reduction
interventions
• Estimation/determination of annual savings achieved to date through NRW
reduction activities
Recommendations for system infrastructure improvements to be carried out on a
system supply level;
Recommendations for the preparation of an IWA benchmark water balance to be
carried out per supply system/area
Preparation of a 5-year NRW implementation programme/roll-out plan for intervention,
on an annual basis;
Identification of highest impact NRW reduction intervention per supply system
Development of Key Performance Indicators and Measurement Baselines to measure
improvements in the reduction of network losses over the next 5 years
Identification/differentiation between pilot interventions and full scale roll-out
interventions
Corresponding development of procurement guidelines
Assessment of the current in-house capacity of the Water Services Department and
subsequent preparation of a 6-monthly job description/work functions / work plans for
each current resource
Review and assessment of funding strategies
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
It must be noted that the intention of this report is not to go into extreme detail regarding supply
problems, operational problems and infrastructure shortcomings in each of the supply areas.
Rather, the intention is to offer direction for the global implementation of a water loss
management programme.
3.
Legislative Framework
3.1
Legal Framework
Although not a legislative requirement at this stage, this strategic management plan has been
prepared within a prevailing legislative framework which addresses the provision of water
services as well as accountability in terms of managing water resources. The legal documents
referenced or used in the compilation of this Master Plan are as follows:
•
•
•
•
National Water Act – 1998 (№ 36 of 1998)
National Water Amendment Act – 1999 (№ 45 of 1999)
Water Services Act (№ 108 of 1997)
Water Services Amendment Act – 2004 (№ 30 of 2004)
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•
•
•
3.2
Norms and Standards in Respect of Tariffs for Water Services in terms of Section 10(1) of the
Water Services Act (№ 108 of 1997)
Regulations relating to Compulsory National Standards and Measures to Conserve Water
Water Services By-Laws of the AMAJUBA District Council as Water Services Authority
Policy Framework
In support of the Legislative Framework, a number of policy documents have been referred to in
the drafting of this Master Plan, both from a National and local perspective. These are:
•
•
•
•
•
4.
National Water Conservation and Water Demand Management Strategy, 2004
Water Conservation and Water Demand Management Strategy for the Water Services
Sector, 2004
National Water Resource Strategy (NWRS), 1st Edition, September 2004
Guidelines for Water Supply Systems Operations and Management Plans during Normal and
Drought Conditions (RSA c 000/00/2305), October 2006
Amajuba District Municipality Water Services Policy
Limitations of Strategic Plan
This Master Plan is strategic in nature and therefore by definition cannot be used as an
operational document. It provides a framework within which implementation can take place and
advocates an intervention strategy, achievable targets and budget requirements. It is based on a
desktop study without the valuable input provided by detailed field measurements. Although
every effort has been made in terms of validating the accuracy of the information used in the
preparation of the Master Plan, much of this information has been gained from multiple sources
and has had to be trusted without independent verification. This aside, there is a high level of
confidence in both the figures used and the recommendations made.
Any NRW reduction strategy and implementation programme must take cognisance of both local
and national imperatives, regulations and guidelines. In this regard, a holistic approach to the
reduction of NRW from a strategic (5-year) to detailed operational (1-year) focus has been
proposed, summarised in Figure 1. This constitutes the overall framework within which the NRW
reduction programme should take place.
It must also be noted that this Master Plan has been of singular focus in terms of reducing NRW –
it has not addressed the larger issues affecting water conservation, which must be borne in mind
when interpreting the contents of the Master Plan.
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Figure 1: Amajuba District Municipality Non-Revenue Water Reduction Programme Implementation
5.
Non-Water Revenue Reduction Framework
5.1
International Best Practice International Water Association – Losses from Water Supply Systems:
Standard Terminology and Recommended Performance Measures
5.1.1 Background
With the increasing international trend towards sustainability, economic efficiency and protection
of the environment, the problem of losses from water supply systems is of major interest
worldwide. Both the technical and financial aspects are receiving increasing attention, especially
during water shortages or periods of rapid development.
However, particular problems and unnecessary misunderstandings arise because of differences in
the definitions used by individual countries for describing and calculating losses. Also, traditional
performance indicators also give conflicting impressions of true performance in controlling water
losses (for example, the use of percentages).
In 1996, the Operations and Maintenance Committee of the IWA’s Distribution Division set up a
Task Force to review existing methodologies for international comparisons of water losses from
water supply systems. The main objectives were:
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To prepare a recommended basic standard terminology for calculation of real and
apparent losses;
To recommend how the annual volume of real and apparent losses should be calculated
from a water balance; and
To review and recommend preferred performance indicators for international
comparisons of losses.
•
•
•
The resulting publication (Losses from Water Supply Systems: Standard Terminology and
Recommended Performance Measures)1 summarises the conclusions of the Water Losses Task
Force, with particular reference to the preferred Performance Indicators for assessing operational
performance in control of real losses in supply systems.
The Water Losses Task Force publication formed an integral part of a more comprehensive IWA
publication: Manual of Best Practice “Performance Indicators for Water Supply Services”2.
It is these two publications that form the International Standard used on this project.
5.1.2 Basic Terminology
Some of the standard definitions for international use used in this report have been included
below for ease of reference and understanding:
•
System Input Volume is the volume of water input to a distribution system.
•
Authorised Consumption is the volume of metered and/or unmetered water taken by
registered consumers, the water supplier or others who are authorised to do so, for
domestic, commercial and industrial purposes (authorised consumption includes items
such as fire fighting and training, flushing of mains and sewers, street cleaning, watering
of municipal gardens, public fountains and building water. These may be billed or unbilled,
metered or unmetered according to local practice).
•
Water Losses of a system are calculated as:
Water Losses = System Input Volume – Authorised Consumption
Water losses can be considered as a total volume for the whole system, or for partial
systems such as bulk or reticulation. In each case the components of the calculation would
be adjusted accordingly. Water Losses consist of Real and Apparent losses, and are
effectively identical to Unaccounted-for Water.
•
Real Losses are physical water losses from the distribution system, up to the point of
consumer metering. The volume lost through all types of leaks, bursts and overflow
depends on frequencies, flow rates and average durations of individual leaks.
•
Apparent Losses consist of unauthorised consumption (theft or illegal use) and all types of
inaccuracies associated with bulk and consumer metering. For example, under-
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registration of bulk meters and over-registration of consumer meters leads to underestimation of losses. Conversely, over-registration of bulk meters and under-registration
of consumer meters leads to over-estimation of real losses.
•
Unauthorised Consumption is generally associated with the misuse of fire hydrants and
fire service connections, and illegal connections.
•
Non-Revenue Water (NRW) is the difference between the System Input Volume and Billed
Authorised Consumption.
5.1.3 Basic Approach
The best practice in management of water losses consists of a combination of continuous water
balance calculations together with night flow measurements on a continuous or “as required”
basis. The water balance, usually taken over a 12-month period, should include:
•
•
•
A thorough accounting of all water into and out of a distribution system, including
inspection of system records;
An ongoing meter testing and calibration programme; and
Due allowance to time lags between bulk meter readings and consumer meter readings.
The water balance calculation quantifies volumes of total water into the supply system, authorised
consumption (billed and unbilled, metered and unmetered) and water losses (apparent and real)
as shown in Figure 2. Where continuous leak detection is not being practised, the process may
also include a cost to benefit analysis for recovering excess leakage, leading to a leak detection
programme.
Authorised
consumption
m3/year
System
input
volume
m3/year
(±x%)
Billed authorised
consumption
m3/year
(±x%)
Unbilled
authorised
consumption
m3/year
(±x%)
Apparent losses
m3/year
(±x%)
Water losses
m3/year
(±x%)
(±x%)
Real losses
m3/year
(±x%)
Billed metered
consumption
Billed unmetered
consumption
Unbilled, metered
consumption
Unbilled unmetered
consumption
Illegal connections
Metering inaccuracies
Revenue water
m3/year
(±x%)
Non-revenue
water
m3/year
(±x%)
Mains leaks
Reservoir overflows
Service connection
leaks
Figure 2: Components of an IWA Water Balance
All water balance calculations are approximate to some degree because of the difficulty of
assessing all the components with complete accuracy. The reliability is likely to be greatest when
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input volumes are purchased (with duplicate metering), and all water is measured through
regularly maintained accurate customer meters supplying properties that do not have storage
tanks. Storage tanks can result in low flow rates through service connections, and these low flows
may not register accurately on the customer meter.
Best practice, as recommended by the IWA Performance Indicators Group is to assign confidence
grades to each component of the water balance, incorporating both reliability and accuracy
grades. In some countries these grades are checked independently as part of the process. Some
discussion around the use of the confidence grading system has been included later in the report.
Each component of the annual water balance (Figure 1) should always be initially presented in
terms of volume per year.
An improved understanding of Real Losses can be obtained by classifying components as follows:
•
•
•
•
Background losses from very small undetectable leaks – typically low flow rates, long
duration, large volumes;
Losses from leaks and bursts reported to the water supplier – typically high flow rates,
short duration, moderate volumes;
Losses from unreported bursts, found by active leakage control (ALC) – medium flow
rates, but duration and volume depends on ALC policy; and
Overflows at, and leakage from, service reservoirs.
Methods of assessing Real Losses, other than from Water Balances, include:
•
•
•
Analysing night flows based on district meter data
Recording numbers and types of leaks and bursts and their average flow rates and
durations
Modelling calculations that allow for background leakage and pressure.
Although physical losses after the point of customer metering are excluded from assessment of
Real Losses under this definition, they can sometimes be highly significant and worthy of attention
for demand management purposes.
5.1.4 Results Presentation
The Water Losses Task Force had, as part of their brief, to determine suitable, internationally
applicable key performance indicators that could be used to table (essentially a-dimensional)
results. The key indicators were to address both technical and financial performance.
It was the findings of the Task Force that the choice for a basic operational performance indicator
lay between length of mains or per connection. International experience has shown that the
greatest proportion of losses occurs on service connections rather than mains, except at low
density of connections. The Task Force’s rationale was therefore to use a “per service connection”
indicator which is more likely to be suitable for the widest range of situations.
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The performance indicators developed by the Water Losses Task Force were included in the IWA’s
Manual of Best Practice “Performance Indicators for Water Supply Services”2. In this publication,
three levels of performance indicators were recommended for use by water utilities, namely:
•
•
•
Level 1 (L1): a first layer of indicators that provide a general management overview of
the efficiency and effectiveness of the water undertaking;
Level 2 (L2): additional indicators which provide a better insight than the Level 1
indicators for users who need to go further in depth; and
Level 3 (L3): indicators that provide the greatest amount of specific detail, but are still
relevant at the top management level.
Each of these levels apply to performance indicators in the following fields: water resources,
personnel, physical, operational, quality of service and financial. Not all these performance
indicators are applicable to water loss management; therefore only those applicable to water loss
management have been included. The recommended water loss management performance
indicators, including their relevant importance in terms of level, have been presented in Figure 3.
A more detailed discussion on the operational performance measures has been included after
Figure 3.
Figure 3: Relative Importance of Recommended Water Losses and Non-Revenue Water Indicators
Technical Indicator for Real Losses: The Water Losses Task Force recommended that the basic
Technical Indicator for Real Losses should be the annual volume of Real Losses divided by the
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number of service connections (Nc), allowing for the percentage of the year for which the
system is pressurized, ie.
CARL = Current Annual Volume of Real Losses/Nc
(litres/service connection/day when the system is pressurised)
A more detailed interpretation of CARL values can then be obtained by comparing the CARL
value with a ‘best estimate’ of Unavoidable Average Real Losses (UARL) that allows for local
conditions of connection density, location of customer meters and average operating pressure,
if all aspects of leakage control were being managed to the highest technical standards.
Unavoidable Average Real Losses (UARL): It was recommended that the calculation of the UARL
in litres/service connection/day be based on the following form of equation. This recognized
separate influences of Real Losses from length of mains (Lm in km), number of service
connections from the edge of the street to customer meters (Lp in km), and average pressure (P
in metres) when the system is pressurized.
UARL = (A x Lm/Nc + B + C x Lp/Nc) x P
(litres/service connection/day when the system is pressurised)
The equation and its parameters A, B and C are based on statistical analysis of international
data, including 27 different water supply systems in 20 countries.
Comparisons of CARL and UARL : The difference between the CARL and the UARL represents
the maximum potential for further savings in Real Losses, when the system is pressurized. Also,
the ratio of CARL to UARL is a useful non-dimensional index of the overall condition and
management of infrastructure, under the current operating regime of average pressure and
continuity of supply, and is recommended as an additional step in interpreting the calculated
value of the CARL for a wide range of international situations. The question as to whether the
current pressure regime is unnecessarily high, or too low, should of course also be evaluated on
a regular basis.
Infrastructure Leakage Index (ILI) = CARL/UARL
For example, if the CARL is 107 litres/connection/day, and the UARL is 53.6
litres/connection/day, the Infrastructure Leakage Index is 107/53.6 = 2.0. Values of ILI calculated
for 27 actual situations in 20 countries, which were used to test the validity of the methodology,
ranged from close to 1.0, up to just above 10.0. Well-managed systems in very good condition
would be expected to have ILI values close to 1.0, with higher values for older systems with
infrastructure deficiencies. Figure 4 is the graphical representation of he ILI values from the 20
countries.
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Figure 4: Infrastructure Leakage Index (ILI) Values from 27 Water Supply Systems in 20 Countries
(as compiled by IWA Water Losses Task Force)
5.2
Performance Indicators for Water Supply Services – Data Confidence Grading
5.2.1 General
The results and analysis of the approaches tabled in the previous sections will always be
dependent on the quality of information and data used. In this regard a Confidence Grading
Scheme has been used to assess the adequacy, reliability and accuracy of the existing data in
determining the relevant performance indicators.
The system used for this purpose was the recommended standard contained in the International
Water Association’s Manual of Best Practice: Performance Indicators for Water Supply Services.
The confidence grades are intended to provide a rational basis for undertakings to qualify
information provided for, in this case, analytical purposes, as regards to reliability and accuracy.
In accordance with international Best Practice, a quality assurance approach has been employed
in the methodology used to assign confidence grades. The confidence grades reflect the current
status of the data, not the future status that it may be intended to achieve.
An alpha-numeric grading system has been utilized, comprising of the combination of two fields:
reliability bands and accuracy bands.
5.2.2 Reliability Bands
The following reliability bands for data were proposed:
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A – Highly Reliable:
data based on sound records, procedures, investigations or analyses
that are properly documented and as such are recognized as the best
available.
B – Reliable:
generally as in Band A, but with minor shortcomings – some of the
documentation is missing, the assessment is old or some reliance on
unconfirmed data or reports is made.
C – Unreliable:
data based on extrapolation from a limited sample for which band A
or B is not available.
D – Highly Unreliable:
data based on unconfirmed verbal reports and/or cursory inspections
or analysis.
5.2.3 Accuracy Bands
Accuracy is defined as the approximation between the result of a given measurement and the
(conventionally) correct value for the variable to be measured. Whenever the measurement
accuracy cannot be assessed, it should be graded as greater than 100%.
The accuracy bands utilized are:
1
2
3
4
5
6
X
:
:
:
:
:
:
:
better than or equal to ±1%
not band 1, but better than or equal to ±5%
not bands 1 or 2, but better than or equal to ±10%
not bands 1, 2 or 3, but better than or equal to ±25%
not bands 1, 2, 3 or 4 but better than or equal to ±50%
not bands 1, 2, 3, 4 or 5 but better than or equal to ±100%
values which fall outside the valid range, such as >100%, or small numbers.
5.2.4 Overall Confidence Grades
The confidence grades are represented as an alphanumeric code, which couples the reliability
band and the accuracy band – for example:
A2
-
data based on sound records (highly reliable, Band A) which is estimated to be
within ±5% (Accuracy Band 2)
C4
-
data based on extrapolation from a limited sample (unreliable, Band C) which is
estimated to be within ±25% (Accuracy Band 4).
The application of this data confidence grading has been included later in the report.
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5.3
National Best Practice: SABS 0306 – The Management of Potable Water in Distribution Systems
5.3.1 Background
This standard was approved according to SABS procedures on 25 June 1999 and was publicly
launched at the Afriwater Exhibition held at Midrand in July 1999. The standard was issued as a
Code of Practice and, as such, is to be used as a guideline; it is not a statutory requirement to
which Water Supply Authorities (WSA’s) must adhere.
The standard covers the management, administration and operational functions required by
WSA’s in order to account for potable water within distribution systems and to apply corrective
actions to reduce and control unaccounted-for water (UAW) or Non-Revenue Water (NRW).
The aim of the standard is stated as being the presentation of a uniform approach for all WSA’s to:
•
•
•
•
•
•
•
Establish a strategic plan for the management of potable water delivery;
Review an existing management programme;
Offer direction for the implementation of such a plan;
Quantify the extent and cost of NRW in potable water distribution systems;
Determine the appropriate resources required for the operation of those programmes;
Establish accurate accounting for potable water; and
Reduce NRW.
5.3.2 Basic Terminology
The list of standard definitions used in the Code of Practice is exhaustive. However, some of the
more fundamental definitions used in this report have been included below for ease of reference
and understanding:
•
•
•
•
•
•
Leakage (volume): that part of unaccounted-for water that escapes or leaks other than as
a result of a deliberate or controllable action over a specified period.
Loss: the volume of water that flows through a given section of a pipe during a specified
time interval and that is not consumed or used as a result of deliberate or controllable
action.
Loss Rate: the volume rate of flow (through a given section of a pipe) of water that is not
being consumed or used as a result of a deliberate or controllable action.
Minimum Night Flow Rate (Qmnf): the lowest consistently repeatable flow rate into an
area, district or zone, measured during the period of lowest consumption (typically from
midnight to 04h00), and which includes legitimate consumption, leakage on premises and
leakage from the distribution system.
Net minimum Night Flow Rate; Minimum Night Flow Loss Rate (Qmnfl): the flow rate
obtained by subtracting any legitimate consumption rate at the time of the minimum
night flow rate measurement, from the minimum night flow rate Qmnf.
Specific Loss Rate (Qsl, Qsp or Qsc): the loss rate (determined in litres per hour) divided
respectively by the total length of piping (in kilometres), by the number of properties or
by the number of connections.
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•
•
Unaccounted-for Water (Volume) Vuaw: the difference between the measured volume of
water put into the supply and distribution system and the total volume of water measured
to authorised consumers whose fixed property address appears on the official list of the
WSA.
Water Balance: the difference between the measured volume of potable water put into a
water distribution system and the total volume of potable water measured at any
intermediate point in the water distribution system. Effectively, a statement setting out
the amount of water flowing in and water flowing out on an area-by-area basis.
5.3.3 Results Presentation
The Code of Practice has developed its own set of results that are unique to South Africa and local
conditions. In line with international practice, the Code of Practice clearly states that the use of
percentages should never be used to quantify water losses. However, the formulae used to
quantify losses are specific loss rates and comparative ratios.
The preferred term for presenting results of analysis is Specific Loss Rate. Specific Loss Rates, as
described above, can be expressed as a function of the length of reticulation mains, number of
properties or number of connections, depending on the availability and accuracy of system
information.
Whenever required, values for specific loss rates can be established for each management district,
subdistrict and zone where permanent meters have been installed, by logging the flowmeter for a
short time period. The specific loss rate values for all areas should be plotted on a monthly graph
to observe leakage trends for each area.
All specific loss rate values should be expressed in the same units (for example, cubic metres per
hour per kilometre) and ranked in descending order. It is preferable that these values come from
the latest measurement cycle. The area with the highest specific loss rate will also have the
highest water losses. This ranking will provide the basis for scheduling intervention, maintenance
or repir work in the zone.
The Comparative Ratio (Ram) is a useful action indicator that compares the average daily demand
(Qad) to the minimum night flow rate (Qmnf) for any zone under analysis, and is provided by using
the formula Ram = Qad/Qmnf. It is a quick indicator that provides a “state of health” snapshot with
the interpretation being that the closer Ram approaches the value 1, the worse is the condition of
the distribution system.
5.4
General Approach
The implementation of any water loss management programme is multi-phased. The ultimate
objective of any such initiative must be to reduce unnecessary distribution losses to an
economical minimum while maximising revenues from customers. One such way of monitoring
any water utility’s success in this regard is by compiling a monthly or annual water balance. A
number of performance indicators can be determined from this water balance to identify
progress in minimizing water loss in its various components.
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The water balance can be prepared in either a “top-down” or “bottom-up” approach. The “topdown” approach is largely a desktop exercise whereby generally, high-level information from
readily available documentation is collected and reviewed to prepare a water balance. Typical
data included in this approach is bulk water volume (treated and/or purchased), customer billing
volumes, leak repair summaries meter calibration tests, fire hydrant use etc. The “top-down”
approach, while approximate in its reliability, can be compiled relatively quickly and is usually
advisable for utilities preparing their first water balance.
The “bottom-up” approach involves taking field measurements and conducting audits,
investigations and research into the policy and practices of the water utility. This is necessary to
extract the explicit knowledge on the total variety of water use and losses. The use of night flow
analysis to obtain inferred measurements of leakage is an example of using actual field
measurements in the “bottom up” approach to replace estimates of distribution losses used in a
“top down” approach.
The “bottom-up” approach improves the accuracy of the water balance in reflecting the true
water delivery and billing process. However, it requires more time and resources to conduct field
measurements and research to gain the greater level of information required to improve the
water balance. However, no detailed or accurate field measurement were made available during
the compilation of this Master Plan, so all water balances have been prepared based on the “top
down” approach.
The three phases that will be adopted while implementing the 5-year NRW strategy will be:
•
•
•
System assessment
Intervention
Operation and Maintenance
The primary focus of the three phases is to understand the distribution system, water use and
losses while at the same time reduce both real and apparent losses. This approach has been
indicated in Figure 5.
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TIME +++++
System Assessment
Distribution System
Analysis
Billing Database
Analysis
Site inspection
Objective 1
Preliminary field
measurements
Objective 2
Intervention
Real Loss
Reduction
Apparent Loss
Reduction
Operation & Maintenance
Real Loss Control
Apparent Loss
Control
Field verification
Field verification
Field verification
Objective 3
Supply extent
verification
Infrastructure
improvements
(creation of zones)
Baseline measurements
+++++ TIME
Data analysis
Fixed-outlet
pressure
reduction
Recommendations
Recommendations
Preparation of IWA Water Balance and Key
Performance Indicators
Advanced
pressure
management
Active leak
detection and
repair
Level of service
review (pressure
zones)
Sustained
monitoring and
determination of
Economic Level of
Intervention
Public standpipe
control
Illegal
connections
Meter reading
Monitoring of Selected Key
Performance Indicators
Database
maintenance
Policy
enforcement
Bulk meter
calibration
Monitoring of IWA Water Balance
and Key Performance Indicators
Reporting
Figure 5: Amajuba Water Loss Management Project Approach
5.5
Methodology Used for the Amajuba District Municipality Water Balance
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The water balance in the Amajuba District Municipality was completed using the “top down”
approach at this stage. The following steps are followed for completing the water balance in this
way:
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Step 7:
Step 8:
the System Input Volume is calculated and included in the water balance
the components of the Billed Authorised Consumption were identified, calculated and
summed up. These included the Billed Metered Consumption, Free Basic Water
(consumption <=6kl/month, within the allocated consumer quota, majority being
consumption of <=1kl/day on average), Metered Municipal Consumption and Metered
Standpipes. The BAC is the Revenue Water in the water balance
the volume of Non-Revenue Water is calculated by subtracting the Revenue Water from
the System Input Volume
the components of the Unbilled Authorised Consumption were identified, calculated
and summed up. These included Unmetered Municipal Use (firefighting, scouring etc)
and Unmetered Standpipes’ consumption
the volumes of the Billed Authorised Consumption and Unbilled Authorised
Consumption are summed up to get the Authorised Consumption value.
Water Losses are then calculated as the difference between System Input Volume and
Authorised Consumption
the Real Losses are calculated by using IWA best practice even though at this stage, no
field pressure and flow measurements were undertaken to determine Minimum Night
Flows and Average Zone Pressures to aid in Real Loss determination. 80% of water
losses were estimated to account for the real losses. These were then input into a
minimum night flow analysis model and iteration conducted to determine the best real
figures to be presented. The real losses comprised of Mains and Distribution leaks,
reservoir overflows and service connection leaks.
the Metering Inaccuracies are calculated using best known practice, approximated at
3.5% of the BAC, and the volume subtracted from Apparent Losses to get Unauthorised
Consumption
6.
Non-Revenue Water Within Amajuba District Municipality
6.1
Definition and Extent of Area of Operation
The Amajuba District Municipality is the Water Services Authority located in the north-western
corner of KwaZulu-Natal and comprises of three Local Municipalities of Newcastle (KZ252),
Utrecht (KZ253) and Dannhauser (KZ254). However, on instruction from the Client, this report
only includes a Master Plan and information for the Utrecht and Dannhauser areas of jurisdiction.
The ADM region comprises of a combination of urban, peri-urban and rural settlements. The
population figures for the District have been included in Table 1.
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Municipality
Dannhauser Municipality
Newcastle Municipality
Emadlangeni (Utrecht) Municipality
Total
Population Estimate
97 602
364 244
40 316
502 162
Source: WSDP 2009/10 Amajuba DM Report
Table 1: Amajuba District Population Estimate
Dannhauser and Utrecht Municipalities have four potable water schemes – Dannhauser, Utrecht,
Durnacol and Hattingspruit.
The Durnacol Supply System obtains raw water from the Chelmsford Dam which is pumped to the
Durnacol raw water reservoir. This raw water reservoir gravity feeds into the Durnacol Water
Treatment Plant. Treated water is gravity fed through a single outlet that splits and feeds two
storage reservoirs. These two reservoirs feed an outlet manifold which has three metered outlets
supplying the reticulation system to consumers. The System Input Volumes included in this report
are determined from these three outlet meters.
The Dannhauser Supply System is also supplied from the Chelmsford Dam via the Durnacol raw
water reservoir, which also supplies the Dannhauser Water Treatment Plant. Treated water
departs through two bulk mains and is pumped into two treated water storage reservoirs which in
turn supply the reticulation system. The System Input Volumes included in this report are
determined from the two meters at the pump station.
The Utrecht Supply System is supplied from the Nywerheid and Dorp Dams via the Utrecht Water
Treatment Plant. Once water has been treated, it leaves via three pumped outlets, two of which
supply one storage reservoir. The System Input Volume is determined from the existing meters on
these three outlets. Consumers are supplied from two storage reservoirs which are interlinked
before feeding the reticulation network.
The Hattingspruit Supply System is supplied from Newcastle’s Biggarsberg Water Treatment Plant
through Glencoe 2 Reservoir. The line that supplies Glencoe 2 Reservoir has a metered off-take
(from which the System Input Volume is determined) that supplies Hattingspruit Reservoir. From
the off-take to the Hattingspruit Reservoir there are at least seven off-takes to small settlements
which form part of the Hattingspruit system.
6.2
Relationships with Other Departments
ADM has for some time recognised the importance of minimising system losses although had
exercised limited focused intervention to keep real losses under control. ADM has allocated the
responsibility for WC/WDM to its existing Directorate: Engineering Services. The structure of the
entire ADM Water Services Branch (senior posts only) has been included in Figure 6.
Reporting and management within the Directorate: Special Projects currently takes place directly
from Manager to General Manager as the Senior Manager post is currently vacant.
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Due to the current environment, WC/WDM enjoys a relatively high profile with direct access to
influential decision makers. Also, the working relationship between engineering Services and
other Directorates appears to be beneficial, although a lack of understanding of WC/WDM and
NRW to any WSP/WSA’s operation appears to be present, particularly with those directly involved
with system operations.
Director Engineering
Services (Sect. 57)
Admin Officer (06)
Deputy Director
Engineering (01)
PMU
Assistant Director (03)
Operations
Assistant Director (03)
Assistant Director
Compliance & Data Analyst
(03)
Assistant Director
Project Finance (03)
Admin Officer Projects
(06)
VACANT
Operations
Manager (04)
ISD
Facilitator (05)
PMU
Senior Eng. Technician
(04)
Operations
Technician (05)
VACANT
Process
Technician (05)
Water Tanker Driver (11)
PMU
Senior Eng. Technician
(04)
Infrastructure & Works
Manager (04)
ISD
Facilitator (05)
ISD
Facilitator (05)
Water Tanker Driver (11)
Figure 6: Current Organogram for Engineering Services
6.3
Non-Revenue Water Areas of Influence
Non-Revenue Water has the potential to be central to how a WSP/WSA operates, as the
optimising of operational and financial efficiency centres around the level of losses experienced
by any distribution system. The concepts of Impact, Influence and Dependency of NRW activities
must therefore be addressed at strategic (Master Plan) level.
For the purposes of this Master Plan, the following definitions apply:
•
•
“Impact” refers to the impact of other areas of operation/activity on levels of NRW
“influence” refers to what influence NRW has on other areas of operation/activity
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•
“Dependency” refers to the reliance of NRW activities on external roleplayers to achieve
NRW targets
Non-Revenue Water areas of influence include:
•
•
•
•
•
•
•
System knowledge
Operations
Design
Maintenance
Legal/Policy
Finance/budget
Organisational Design and Human Resources
These have been rated according to their Impact, Influence and Dependency into five categories of
Minimal (1), Low (2), Moderate (3), High (4) or Significant (5). The current perceived rating is
represented in Table 2 and combined together in the radar graph Figure 7 after.
Service Delivery Aspect
System Knowledge
Operations
Design
Maintenance
Customer Services
Legal/Policy
Finances/Budget
Organisational Design & HR
Impact
1
3
2
2
1
1
2
1
Field (Baseline)
Influence
2
3
2
2
2
1
2
2
Dependency
4
4
3
3
4
3
5
3
Table 2: WC/WDM and Non-Revenue Water Area of Influence
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Amajuba District Municipality - Strategic NRW Master Plan
Influence of NRW on Other Areas of Operation
System Knowledge
5
4
Operations
3
2
1
Finances/Budget
Design
0
Legal
Maintenance
Customer Services
Field (Baseline) Influence
Field (Target +5 years) Influence
Figure 7: Current Non-Revenue Water Area of Influence
This strategic mapping exercise has presented the following scenarios:
•
•
•
6.4
WC/WDM and NRW activities should have a relatively high influence on system operation
and design
Other activities outside the control of WC/WDM and NRW do have a significant impact on
levels of NRW
NRW is almost exclusively reliant on external roleplayers to meet and sustain NRW targets
Profile of Non-Revenue Water
In spite of the relatively good relationship enjoyed with other Water Services Departments, the
profile of NRW within ADM is not particularly high. The profile of NRW, when raised, is more often
than not in a negative sense, usually following a negative incident, and normally addressed to the
WSP, uThukela Water.
The Directorate: Engineering Services is currently responsible for any NRW activity as well as any
other ADM special project (and then not restricted to water projects). The Directorate is headed
by a Manager (with part-time attention and focus on NRW) and one Deputy-Director whose
portfolio includes WC/WDM. These resources are jointly responsible for the monitoring and
evaluation of all NRW reduction activities implemented within ADM.
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7.
Review of Non-Revenue Water Activities to Date
The Amajuba District Municipality (ADM) has not been actively implementing a Water Loss
Reduction Programme, although activities seem to have been restricted to a monitoring and
evaluation programme that identified and monitored areas of concern rather than actively
reducing the perceived levels of water losses in the ADM areas of supply.
As part of ongoing system operations and maintenance, it is unclear if infrastructure that has
exceeded its design service life is being replaced (e.g. mains replacement), but this is normally
undertaken by the WSP, uThukela Water, as is any other perceived operations, maintenance and
water loss reduction activity.
8.
Situation Analysis – Terms and Current Non-Revenue Water Information
8.1
Source Data Supplied for Master Plan
The following data was provided by Amajuba District Municipality as part of this project:
•
•
•
•
•
•
•
8.2
Cadastral layout in GIS shapefile format
5m interval contours in GIS format
Last 5 financial years’ billing database (meter readings)
Supply reservoir information
Amajuba Bulk water services master plan
System Input volumes covering last five years for four systems, and from 2005 for rest of
the schemes
Number of and consumption volumes from standpipes
Integrity of Information Supplied for Master Plan
The Confidence Grading System was applied to the source data provided and the results have
been included in Table 3.
Data Description
Data Confidence Grade
GIS Cadastral
5m interval contours
Billing database
Supply reservoir information
ADM bulk water services masterplan
System input volumes
Standpipes’ numbers and volumes
A2
A1
A2
A2
A2
C2
C5
Table 3: System Data Confidence Grading
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The confidence grading system as described in this section applies to the source data or raw data
that was used as the basis for the analysis of results and has been included as an indication of the
quality or integrity of information.
The integrity of data does have an impact on the accuracy of the analyses carried out as part of
the scope of work but this shall be dealt with by applying 95% Confidence Levels to the indicators
and water balance in this section. The worst affected were the SIV, especially from the rural
schemes.
For purposes of this report, the rural consumption of 25l/p/d with 40% losses addition has been
adopted, as was utilized in the preparation of the ADM WSDP.
8.3
Billing Database Analysis
The integrity of evaluation of revenue water in any water balance is dependent on that of the
billing database being analysed. The following actions were undertaken to establish the reliability
of the billing database received from uThukela Water, who are responsible for the biling of all
customers within Amajuba District Municipality:
•
•
•
•
•
•
Confirmation that the billing codes received covering the entire database were correct
Discussion with the WSP water supply managers to shed light on degree of consumers bypassing meters
Confirmation that every meter is read regularly (monthly)
Determination that each metered property has only one meter – though this scenario is
currently changing
Confirmation that there were few cases of replaced meters still existing in the database –
this affected its 95% confidence level grading negatively
Confirmation that the number of registered connections/meters averaged around the
4500 figure
The entire ADM billing database was received from the Finance Department of uThukela Water.
The spreadsheets were stripped of all financial values and contained monthly meter reads/
consumption figures per registered consumers only, for the 2009/2010 financial year. These data
sets were cleaned and allocated to the various supply zones/schemes using a special coding
existing on the database. Bulk meters, municipal meters and communal standpipe meters were
not present in this database.
8.3.1 Analysis of Billed Consumption Trends
The Billed Metered Consumption per supply system (where billing data was reflective), for the
2009/10 financial year has been summarised in Tables 4 and 5 and presented graphically in
Figures 8 to 22. A detailed analysis of these figures has been included in Annexure A hereto.
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Supply Area
Utrecht
Dannhauser
Durnacol
Hattingspruit
Total for
Amajuba DM
Total
Number of
Billing
Records
17 004
11 316
8 232
1 320
37 872
10 668
6 988
5 948
779
Total
Number of
Unread
Meters
2 599
1 531
555
209
Total
Number of
Blank
Records
3 600
2 768
1 700
324
Total Number
of Records
with Zero
Consumption
137
29
29
8
24 383
4 894
8 392
203
Total Number
of Actual
Readings
Table 4: Billing Database Integrity Analysis – 2009/10 Financial Year
Figure 8: Billing Database Integrity for Amajuba District Municipality – 2009/10
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Figure 9: Billing Database Integrity for Utrecht Local Municipality – 2009/10
Figure 10: Billing Database Integrity for Dannhauser Local Municipality – 2009/10
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Figure 11: Billing Database Integrity for Durnacol – 2009/10
Figure 12: Billing Database Integrity for Hattingspruit – 2009/10
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Supply Area
Utrecht
Dannhauser
Durnacol
Hattingspruit
Total for
Amajuba DM
Total
Number of
Records <6
kl/month
1 055
674
384
68
Total
Number of
Records >6
kl/month
273
237
269
38
2 181
817
Totals
Supply Area
1 328
911
653
106
Utrecht
Dannhauser
Durnacol
Hattingspruit
Total for
Amajuba DM
2 998
Volume of
Records <6
kl/month
Volume of
Records >6
kl/month
Totals
5 870
4 128
2 833
249
19 734
15 168
12 419
4 595
25 604
19 296
15 252
4 844
13 081
51 915
64 996
Table 5: Billing Database Analysis: Free Basic Water Allocations – 2009/10 Financial Year
Figure 13: Free Basic Water Allocation for Amajuba District Municipality (Number of Records) – 2009/10
Figure 14: Free Basic Water Allocation for Amajuba District Municipality (Volume) – 2009/10
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Figure 15: Free Basic Water Allocation for Utrecht Local Municipality (Number of Records) – 2009/10
Figure 16: Free Basic Water Allocation for Utrecht Local Municipality (Volume) – 2009/10
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Figure 17: Free Basic Water Allocation for Dannhauser Local Municipality (Number of Records) – 2009/10
Figure 18: Free Basic Water Allocation for Dannhauser Local Municipality (Volume) – 2009/10
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Figure 19: Free Basic Water Allocation for Durnacol (Number of Records) – 2009/10
Figure 20: Free Basic Water Allocation for Durnacol (Volume) – 2009/10
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Figure 21: Free Basic Water Allocation for Hattingspruit (Number of Records) – 2009/10
Figure 20: Free Basic Water Allocation for Hattingspruit (Volume) – 2009/10
8.4
Water Balance
Water Balances were calculated per System Supply Zone for the 2009/10 Financial Year, with
additional information and explanation provided for each water balance component in the
following sections.
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8.4.1 System Input Volume
The System Input Volume (SIV) is defined as the total volume of water entering a discreet
consumption zone. ADM’s SIV was derived from spreadsheets obtained from uThukela Water
(Table 6 below). The data obtained had missing monthly gaps and thus use of averages was
applied. The full interactive spreadsheet has been attached hereto in Annexure A.
uThukela Water
Supply Zone
Supply Zone 13
Supply Zone 13
Supply Zone 13
Supply Zone 13
Total for ADM
System Input Volume
(kl/month)
70 708
50 428
34 594
8 446
164 177
Supply Area
Utrecht
Dannhauser
Durnacol
Hattingspruit
95% Confidence Level
±10,0%
±10,0%
±10,0%
±10,0%
±10,0%
Table 6: Amajuba District Systems/ Schemes’ System Input Volumes
8.4.2 Billed Authorised Consumption
Billed Authorised Consumption (BAC) constitutes the water balance components from which
revenue could be generated and has been divided into four components:
•
•
Metered customer consumption
Consumption within Free Basic Water Allocation – 6 kl/month/household
The first two were derived from individual meter connections’ data.
Table 12 contains the breakdown of Billed and Unbilled Authorised Consumption for each of the
individual supply systems.
Supply Area
Utrecht
Dannhauser
Durnacol
Hattingspruit
Total for Amajuba
District
Billed Metered
Consumption
(kl/annum)
Billed Unmetered
Consumption
(kl/annum)
Unmetered
Municipal Use
(kl/annum)
307 248
231 552
183 024
58 128
0
0
0
0
8 485
6 051
4 151
1 014
Potential Unbilled
Unmetered
Consumption
(kl/annum)
67 968
118 126
86 386
14 168
779 952
0
19 701
286 649
Table 2: Amajuba District Systems/ Schemes’ Billed Authorised Consumptions
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8.4.3 Unbilled Authorised Consumption
Unbilled Authorised Consumption was primarily made up of all Amajuba District Municipality’s
sanctioned devices that provided predominantly rural settlements with some form of water
supply. The physical devices included:
•
•
Unmetered municipal use
Unmetered standpipes
Other UAC components that were also identified included fire fighting, emergency drought relief,
scouring and sewerage pump stations and treatment works’ usage. An evaluation of volumes from
previous Amajuba District Water Audit Reports indicated minimal consumption through these
devices, and thus were not included as part of this report. The average Unmetered Municipal
Consumption was assumed to represent 1% of the SIV per system/scheme. The Unmetered
Standpipes’ connections were calculated as the average of metered consumptions through
metered standpipes within the respective supply zones. The individual systems’ the Unbilled
Authorised Consumptions for the 2009/10 FY have been included in Table 12.
8.4.4 Apparent Losses
Apparent Losses are comprised of Unauthorised Consumption and Metering Inaccuracies.
Unauthorised consumptions are perceived to be from illegal connections while metering
inaccuracies are perceived losses arising from the deterioration of average meter accuracy due to
normal wear and tear that either under-reads, or in exceptional cases over-reads the volume of
water used by the customer. This factor is greatly reliant on supply water quality as well as size
and type of meter. During the Master Plan investigation it was established that majority of the
consumer meters were of 15mm diameter and were installed in the early 80s, over 25 years ago.
International statistics indicate that an accuracy of ± 3.5% of the BAC is sufficient for an area with
Amajuba’s characteristics. The 2009/10 FY apparent losses analyses have been provided in Table
13.
System
Utrecht
Dannhauser
Durnacol
Hattingspruit
Total for Amajuba
District
Annual
Unauthorised or
Illegal
Consumption (kl)
63 575
32 780
17 576
3 044
116 974
Annual Metering
Inaccuracies (kl)
Annual Apparent
Losses (kl)
6 145
4 631
3 660
1 163
69 720
37 411
21 236
4 207
15 599
132 573
Table 3: Amajuba District Municipality Systems/ Schemes’ Apparent Losses Analyses
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8.4.5 Real Losses
Real Losses are determined from leaks/losses from mains and service connections as well as
reservoir overflows. Mains leaks and service connection leaks are calculated from analysing
minimum night flows (MNF) from storage reservoirs. The two can be separated into individual
components by using freely available software (such as SANFLOW developed by the South African
Water Research Commission). Not all MNF consists exclusively of losses and/or leaks – in some
cases there are legitimate night-time consumers and intermittent night usage from users which
form part of the recorded night flow rates. Leaks on private property which passes through a
customer meter are also regarded as being part of consumption.
It is therefore necessary to “unbundle” MNF rates into different components to fully understand
the quantity of real losses. The components of MNF have been represented schematically in
Figure 21. MNF is comprised of the following components: background losses, normal night use
and excess night flow. Of these, only background losses and excess night flow make up real losses.
Unavoidable Annual
Real Losses
Current Annual Real
Losses
Figure 21: Components of Minimum Night Flow
Although no field-work to measure MNF was carried out at this stage, an estimation of 85% of
water losses was adopted to represent the MNF. The summarised results of these analyses have
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MNF
estimation
(m³/hr)
System
Utrecht
Dannhauser
Durnacol
Hattingspruit
Entire ADM Totals
174,0
590,0
66,1
80,5
910,6
Estimated
Background
Losses
(m³/hr)
60,0
155,8
25,3
30,0
271,10
Estimated
Normal
Night Use
(m³/hr)
22,3
33,5
8,5
11,5
75,8
Expected Night
Flow (m³/hr)
Excess Night
Flow
(m³/hr)
82,2
189,3
33,8
71,7
377,0
91,7
400,7
32,3
39,0
563,7
Table 14: Real Loss Estimate and Analysis per Supply System
The data included in the table above has been represented in m3/hr. Under standard IWA
guidelines, these cannot be directly translated into 24-hour daily figures. This is because the rate
of leakage varies during the day as the average system supply pressure changes from demand
fluctuations. The Night-Day Factor (NDF) is the ratio between the leakage rates at night in (m3/hr)
and the average rate over 24 hours (m3/day). Due to lack of system pressure information, the NDF
could not be established and thus the real loss figures generated are slightly on the higher side,
though realistic.
8.4.6 Summarised Individual System Water Balances
The 2009/10 financial year water balances for each individual supply system were created in the
manner described in the previous sections and have been summarised in Tables 15 – 18 below,
complete with 95% confidence levels. The full water balances in IWA format with 95% confidence
levels per system/scheme have been attached hereto in Annexure A.
Water Balance Component
System Input Volume
Billed Authorised Consumption
Apparent Losses
Real Losses
Total Water Losses
Non-Revenue Water
2009/10 Financial Year Volume (kl)
848 501
307 248
76 453
69 720
395 080
464 800
541 253
±10,0%
±10,0%
±22,3%
±101,8%
±7,7%
±16,6%
±14,6%
Table 4: Utrecht Supply System 2009/10 Financial Year Water Balance
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System Input Volume
Apparent Losses
Real Losses
Total Water Losses
Non-Revenue Water
605 133
231 552
124 177
37 411
211 993
249 404
373 581
±10,0%
±10,0%
±23,8%
±120,2%
±7,1%
±19,0%
±15,0%
Table 5: Dannhauser Supply System 2009/10 Financial Year Water Balance
System Input Volume
Apparent Losses
Real Losses
Total Water Losses
Non-Revenue Water
415 133
183 024
90 537
21 236
120 337
141 573
232 109
±10,0%
±10,0%
±23,9%
±138,1%
±6,5%
±21,4%
±16,1%
Table 6: Durnacol Supply System 2009/10 Financial Year Water Balance
System Input Volume
Apparent Losses
Real Losses
Total Water Losses
Non-Revenue Water
101 355
58 128
15 182
4 207
23 838
28 044
43 227
±10,0%
±10,0%
±23,4%
±174,4%
±6,7%
±26,8%
±19,2%
Table 8: Hattingspruit Supply System 2009/10 Financial Year Water Balance
8.4.7 Entire Amajuba District Municipality’s Systems Combined
The water balance for the entire Amajuba District Municipality has been summarised in Table 19.
System Input Volume
Apparent Losses
Real Losses
Total Water Losses
Non-Revenue Water
1 970 123
779 952
306 350
123 573
751 248
883 821
1 190 171
±10,0%
±10,0%
±23,4%
±118,2%
±7,3%
±18,8%
±15,2%
Table 7: Entire Amajuba District Past and Current Water Balances: Simplified Presentation
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The complete individual and combined component-based IWA format water balances with 95%
confidence level grading for each of the systems have been compiled and have been attached as
Annexure A hereto. The application of 95% confidence limits not only allows the water balance to
actually balance within statistically determined ranges, but it also assists in determining which
components of the water balance are weakest in terms of reliability and accuracy of input. These
water balances help provide a greater understanding of each of the supply systems/ waterworks
and also assist in the preparation of specific intervention strategies and cost/benefit calculations
which shall be dealt with in more detail in the following sections.
The current entire ADM’s water balance has been provided in Figure 22.
Billed Metered Consumption
779 952 m3/year
± 10%
Authorised Consumption
1 086 302 m3/year
± 9.8%
779 952 m3/year
± 10.0%
Billed Unmetered Consumption
m3/year
± 5%
Revenue Water
779 952 m3/year
± 10.0%
Unmetered Municipal Use
19 701 m3/year
± 20%
306 350 m3/year
± 23.4%
System Input Volume
1 970 123 m3/year
± 10.0%
Unbilled Unmetered
286 649 m3/year
± 25%
Illegal Consumption
116 974 m3/year
134.0%
Apparent Losses
132 573 m3/year
± 118.2%
Water Losses
883 821 m3/year
± 18.8%
Real Losses
751 248 m3/year
± 7.3%
Non-Revenue Water
1 190 171 m3/year
± 15.2%
15 599 m3/year
± 2.0%
Mains and Dsitribution Leaks
539 863 m3/year
± 10%
Reservoir Overflows
7 512 m3/year
± 5%
203 873 m3/year
± 5%
Figure 22: Entire ADM Current Water Balance with 95% Confidence Levels: Standard Presentation
8.5
Financial Analysis
The purpose of this report is to table the extent of Non-Revenue Water in the ADM water supply
system and not necessarily to quantify the revenue generating components of the system.
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With respect to the NRW components determined from the component based water balance for
the entire district, the costs to ADM that are being experienced have been included in Table 20
based on the average bulk production/purchase cost of R 3,00/kl.
Annual Volumes
(kl)
System Input Volume
Unbilled Authorised
Consumption
Unmetered Municipal Use
Unbilled Unmetered
Apparent Losses
Unauthorised Consumption
Real Losses
Mains Leaks and Bursts
Reservoir Overflows
Total Non- Revenue Water
Annual Cost
to ADM @
R3,00/kl
1 970 123
R5 910 369
306 350
19 701
286 649
132 573
116 974
15 599
751 248
539 863
7 512
203 873
1 190 171
R 919 050
R 59 103
R 859 947
R 397 719
R 350 922
R 46 797
R2 253 744
R1 619 589
R 22 536
R 611 619
R3 570 513
Table 20: Financial Implications of Non-Revenue Water Components
8.5.1 Cost of Water per System
The Annual Total cost of supplying water to the ADM per system has been summarised in Table
21. These costs are derived from SIV volumes during the current 2009/10 FY.
Annual System Input
Volume (kl)
Utrecht
Dannhauser
Durnacol
Hattinspruit
848 501
605 133
415 133
101 355
Entire ADM Totals
Annual SIV Costs
R 2 545 503
R 1 815 399
R 1 245 399
R 304 065
R 5 910 369
Table 8: Annual Cost of Waters per System (Current)
8.5.2 Cost per Water Balance Component (Current)
The Annual Non-Revenue Water costs per system within the AMAJUBA District Municipality have
been summarised in Table 22. The ranking column grades the comparison inefficiencies of the
various systems.
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Annual
Unbilled
Authorised
Consumption
Cost
Annual
Apparent
Losses Costs
Annual Real
Losses Costs
Utrecht
Dannhauser
Durnacol
Hattingspruit
R 229 359
R 372 531
R 271 611
R 45 546
R 209 160
R 112 233
R 63 708
R 12 621
R 1 185 240
R 635 979
R 361 011
R 71 514
R 1 623 759
R 1 120 743
R 696 327
R 129 681
Entire ADM Totals
R 919 050
R 397 719
R 2 253 744
R 3 570 510
Total Annual
NRW Costs
NRW/SIV
Costs
Ranking
64%
62%
56%
43%
1
2
3
4
Table 9: Annual Cost of Non-Revenue Water per System (Current)
8.6
Key Performance Indicators
The key performance indicators for the individual systems within ADM and their ranking have
Total Water
Losses
System
litres/conn/day
w.s.p.
Non-Revenue
Water by
Volume
Inefficiency
of Use
Ranking
1
2
3
4
Utrecht
Dannhauser
Durnacol
Hattingspruit
74,9
60,4
47,1
58,2
63,8%
61,7%
55,9%
42,6%
46,6%
35,0%
28,9%
23,5%
Entire ADM
64,0
60,4%
38,1%
Table 10: Key Performance Indicators (per supply system) based on 2009/10 Financial Year Data
8.6.1 Operational Indicators
The IWA Water Losses Task Force originally compiled an international data set of 27 water supply
systems from 20 countries. As and when information from other systems becomes available, this
data set is updated. Initial analysis of this data has resulted in the calculation of typical ranges of
the recommended IWA performance indicators, which have been included in Table 24.
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Typical Range
Performance Indicator
Excellent
Good/Fair
Below Average
30 to 100
100 to 200
>200
<2.0
2.0 to 5.0
>5.0
30 to 100
100 to 200
>200
1.0 to 1.5
1.5 to 3.5
>3.5
Current Annual Real Losses (CARL) when system
pressurized (litres/service connection/day)
Current Annual Real Losses (CARL) when system
pressurized (litres/service connection/day/m of
pressure
Unavoidable Annual Real Losses (UARL)
(litres/service connection/day)
Infrastructure Leakage Index (ILI) = CARL/UARL
Table 11: Typical Ranges of IWA Performance Indicators
It must be noted that the IWA Key Performance Indicators contained in the above table are a
function of the number of service connections in the distribution system. The technical indicators
CARL and ILI have only been proven if there are greater than 10 000 connections in the zone being
analysed, and if the service connection density is greater than 20 connections/kilometre of
reticulation main. ADM has approximately 37 500 connections in total, has a service connection
density of approximately 20 connections/km and therefore does not strictly adhere to the
parameters of accepted analysis. In spite of this, however, the current rating of the ADM system
KPI’s to the international data set is “below average”.
The combined current key performance indicators are summarised as follows (all KPI calculations
have been compiled and attached in Annexure A hereto):
Total Water Losses
Apparent Losses
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60,4%
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8.7
Demand Projections
Should the ADM system be allowed to grow in line with current growth projections (as included in
the Bulk Water Master Plan) and taking into account system attrition i.e. the rate of deterioration
of infrastructure, the projected water balance components have been included in Table 25. This
“do nothing” approach (Scenario 1) quantifies important figures in terms of reducing NRW
volumes as any intervention proposed will first and foremost need to overcome the impact of
normal growth and attrition before the benefits of intervention will become evident.
A detailed breakdown and water balances for the individual systems for this particular scenario
have been included in Annexure B.
Component
System Input Volume
Unbilled Authorised
Consumption
Apparent Losses
Real Losses
Water Losses
Non-Revenue Water
Inefficiency of water resource
use (%)
NRW by volume (%)
Current WB
Projected Medium
Term Volumes: No
Intervention
kl/year
1 970 123
779 952
95% CI
±10.0%
±10.0%
kl/year
2 826 920
962 042
95% CI
±6.2%
±10.0%
306 350
132 573
751 248
883 821
1 190 171
±23.4%
±118.2%
±7.3%
±18.8%
±15.2%
390 988
168 532
1 305 427
1 473 959
1 864 948
±23.4%
±17.7%
±8.4%
±7.7%
±7.8%
38.1%
60.4%
46.1%
65.9%
Table 25: Entire Amajuba District Projected Water Balance Components – Without NRW Reduction
Intervention (Scenario 1)
Scenario 1 (no intervention) determined that System Input Volume across the entire ADM area
of supply would increase approximately 43% to 2 827 Ml/year and NRW by volume would
increase approximately 56% to 1 865 Ml/year within the 5-year Master Plan period. The
Inefficiency of Use of Water Resources would increase to 46% and NRW by Volume increase to
66%.
9.
Key Challenges Identified in Implementing Non-Revenue Water Activities
The following points were noted as challenges that will/are being encountered in the process of
implementing NRW strategies:
i)
SIV Authenticity: The volumes that were recorded as bulk flows into the system had varying
ranges of accuracy, as some were either estimates or the meters were not working
properly. For any NRW strategy to succeed, the SIV and MNF determination must be
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ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
10.
accurate. Any gains in the system can only be measured if benchmarking from these two
volumes are correct.
Standpipes Metering: Volumes going through free standpipes must be accurately
established. Ideally every standpipe must have an individual meter but if this is constrained
by funding, then each meter must serve as few standpipes as possible, and/or length of
pipe between the meter and the various standpipes must be kept to a minimum.
Inadequate Consumer Meters: Certain systems/schemes have a low percentage of
registered consumer meters, making it difficult to establish BAC. The overall percentages of
registered and read meters to number of connections need to be increased.
Inadequate background data on individual supply schemes/systems (in some instances even
simple system characteristics were difficult to obtain)
Lack of reliable baseline field measurements such as flow (System Input Volume and
Minimum Night Flows) and pressure
Lack of understanding of current best practice, definitions, theory and application of theory
Certain confusion around the extent, constitution and reliability of Billed Authorised
Consumption volumes
Lack of management (and number) of external professional service providers, who
ostensibly operate in isolation
Lack of understanding and implementation of appropriate design standards that could
minimise NRW volumes even at design stage
Dedicated Client capacity constraints and reliance on external Consultants
Lack of clarity on available MTEF budgets for NRW reduction activities
Market-related constraints for specialist service providers (such as leak detection
contractors) due to current industry boom.
Strategic Plan Approach and Methodology
10.1 Overall Target for Non-Revenue Water Reduction
Following the methodology used as a basis for preparing the component-based water balance, the
Non-Revenue Water reduction strategy and intervention guidelines have been proposed for each
of the readily identifiable and unique water balance components. The recommendations
contained in this section apply to either or both of operational best practice or targeted reduction
of certain Non-Revenue Water components.
Once the strategy for reducing Non-Revenue Water has been tabled, the estimated effect of the
intervention and financial cost:benefit analyses will be tabled in later sections. This section is
therefore limited to detailing the scope of recommended interventions – financial implications are
tabled in the following section.
An interactive spreadsheet has been developed that summarizes the recommended intervention
strategy, anticipated impact of intervention on Non-Revenue Water and economic evaluation of
all recommended interventions. This spreadsheet has been included in Annexure D and has been
designed to act as a stand-alone spreadsheet that encompasses all information and
recommendations contained in this report.
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10.2 Supply System Description and Operation
Dannhauser and Utrecht Municipalities have four potable water schemes – Dannhauser, Utrecht,
Durnacol and Hattingspruit.
The Durnacol Supply System obtains raw water from the Chelmsford Dam which is pumped to the
Durnacol raw water reservoir. This raw water reservoir gravity feeds into the Durnacol Water
Treatment Plant. Treated water is gravity fed through a single outlet that splits and feeds two
storage reservoirs. These two reservoirs feed an outlet manifold which has three metered outlets
supplying the reticulation system to consumers. The System Input Volumes included in this report
are determined from these three outlet meters.
The Dannhauser Supply System is also supplied from the Chelmsford Dam via the Durnacol raw
water reservoir, which also supplies the Dannhauser Water Treatment Plant. Treated water
departs through two bulk mains and is pumped into two treated water storage reservoirs which in
turn supply the reticulation system. The System Input Volumes included in this report are
determined from the two meters at the pump station.
The Utrecht Supply System is supplied from the Nywerheid and Dorp Dams via the Utrecht Water
Treatment Plant. Once water has been treated, it leaves via three pumped outlets, two of which
supply one storage reservoir. The System Input Volume is determined from the existing meters on
these three outlets. Consumers are supplied from two storage reservoirs which are interlinked
before feeding the reticulation network.
The Hattingspruit Supply System is supplied from Newcastle’s Biggarsberg Water Treatment Plant
through Glencoe 2 Reservoir. The line that supplies Glencoe 2 Reservoir has a metered off-take
(from which the System Input Volume is determined) that supplies Hattingspruit Reservoir. From
the off-take to the Hattingspruit Reservoir there are at least seven off-takes to small settlements
which form part of the Hattingspruit system.
10.3 Available Non-Revenue Water Reduction Interventions
10.3.1
Real Loss Control
Virtually every water distribution system in the world incurs losses through leakage, and those
leaks have been present since the systems were first installed or constructed. Leakage losses
cannot be completely avoided, although they can be managed to remain within economic limits.
To control real or physical losses, it is important to restate the components that make up real
losses. In the IWA water balance, real losses are made up of mains leaks, service connection leaks
and reservoir overflows, with the first two typically making up the greatest volume of losses.
Losses from these elements are the basis for determining the UARL, and the minimizing of these
loss components form the basis for determining the economic level of leakage for a water
distribution system.
The four-component approach to controlling real losses, shown in Figure 23, has been developed
as a template for water system operators to maintain economically low levels of leakage over a
medium- to long-term period. The core of the graphic represents that any system will incur a
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certain amount of recoverable leakage that can be reduced to its economic value with the proper
combination of the four leakage controls.
Figure 23: The Four Component Approach to the Control of Real Losses
10.3.2
Active Leakage Control
Active leakage control consists of the following activities:
•
•
•
•
•
•
•
regular inspection and sounding of all water main fittings and connections: leakage
surveys;
leakage modeling via innovative methods such as minimum night flow analysis;
metering of individual pressure zones;
District Metered Area (DMA) metering: measuring total inflow per day, week or month;
continuous or intermittent night flow measurements;
short-period measurements at any time of day;
temporary placing of leak noise detectors and loggers.
The effect of leak run time has been exposed and incorporated as an active leakage control
strategy. Leaks left to run long periods of time create large annual loss volumes. In any
distribution system, the greatest annual volume of real losses occur from long-running, small-tomedium sized leaks on customer service connections, except at very low densities of service
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connections. To achieve successful leakage control, water utilities must be effective and efficient
in providing routine surveillance to identify leaks and in executing timely, lasting repairs.
10.3.3
Pressure Management
Another major innovation of efficient loss control is pressure management. It is common
engineering design of water supply systems that adequate pressure be provided to ensure that a
specified minimal level of service is met.
However, it is now understood that certain types of leaks are very sensitive to pressure. Excess
pressure – which is not always carefully assessed by water system operators – has a cost in terms
of higher leakage and unnecessary energy usage. Better understanding high and low pressure
variations gives suppliers more control in preventing surging ruptures and backflow conditions,
thereby extending the life of infrastructure and safeguarding distribution system water quality.
Pressure control has proven to be effective in reducing leakage from “background” leaks, or those
leaks that are so small that they are not easily located or repaired through conventional means.
The installation of pressure reducing valves (PRV’s) and use of selective pressure reduction during
minimum usage nighttime hours is a technique that is effective in economically reducing
background leakage. This technique has greatly challenged the traditional concepts of what is
regarded as “unavoidable” leakage, and assisted the development of the Unavoidable Annual Real
Losses (UARL) calculation.
Specifying appropriate pressure control has been found to be one of the most successful and costeffective means of controlling leakage. Pressure management consists of the following activities:
•
•
•
•
•
pressure modeling via innovative methods such as the Fixed and Variable Area Discharge
Paths (FAVAD) model;
controlling pressure close to, but greater than, the minimum standard of service;
operation of discrete pressure zones configured based upon topography or service supply
standards;
limiting maximal pressure levels or surges in pressure;
off-peak pressure reduction where feasible to reduce losses from small “background”
leaks.
10.3.4
District Metered Areas (DMA’s)
Establishing the practice of discrete zoning or sectorization in large water distribution systems has
been an important factor in implementing ongoing active leakage control. By creating district
metered areas or DMA’s that range in size from several hundred to several thousand properties
each, water usage patterns can be monitored closely to infer leakage rates based upon minimal
night flow rates.
Establishing DMA’s and utilizing leakage modeling techniques effectively provides a quantitative
measure of leakage to the water utility manager. This information is available as the “bottom-up”
contribution to the water balance, improving the accuracy and reliability of that document.
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Such measurements also form the basis for leakage reduction targets on a DMA basis. Flexibility
exists in the manner in which DMA’s are configured such that possible concerns for fire flow
limitations, closed valves and customer usage variations can be safely and cost-effectively
managed.
10.3.5
Apparent Loss Control
Apparent losses typically don’t carry the tangible impact that is experienced with real losses.
Rather, they wield a significant financial effect on both water suppliers as well as customers.
Apparent losses also compromise efforts to reliably distinguish actual water consumption from
real loss volumes.
In the IWA water balance, apparent losses are represented by metering inaccuracies and illegal
consumption. Typically, in South African water supply systems, the latter (unauthorized
consumption) constitutes the largest volume.
Financially, apparent losses represent service rendered without payment recovered. The shortterm economic impact of apparent losses may be much greater than real losses since they occur
at the consumer tariff charged to customers, while short-term real losses occur at the marginal or
unit cost of water.
It is evident that both real and apparent losses have a significant impact on infrastructure
development: high real losses result in oversized pipelines and storage facilities, while high
apparent losses sacrifice a portion of utility revenue that could be invested in infrastructure
needs. Recovering apparent loss can be attractive since it usually offers a speedy payback;
controlling apparent losses also improves equity in revenue collection since a portion of apparent
losses occur when some active customers are inadvertently left out of the billing system.
All nonpaying consumers are effectively subsidized by paying customers, resulting in pressures
that exacerbate the need for higher water rates.
Similar to real losses, a four-component approach to control apparent losses is offered in Figure
24. The notion that current, economic and unavoidable levels of apparent loss exist for any water
system follows the same logic as the assessment of real losses in a water supply system.
The four component approach can be used as a guide for any water operator in determining
where the greatest amounts of apparent loss are believed to exist, and offers interventions
available to reduce overall apparent losses to an appropriate, economic level. The nature of the
interventions needed to control apparent loss in water supply systems parallel policies and
controls that are used in financial accounting.
Many water operators perceive customer meter inaccuracy is the sole “administrative” loss that
occurs in water supply systems. While numerous utilities have documented accountability
improvements by replacing old, worn residential meters, or “right-sizing” large commercial or
industrial meters, it should be recognized that apparent losses have a number components,
including:
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•
•
•
•
•
•
Customer meter inaccuracy; usually occurring due to meter wear, malfunction or
inappropriate size or type of meter;
Data transfer error in getting customer metered usage data into a database or billing
system;
Data analysis error, including poor estimating procedures used for unmetered or unread
accounts;
Poor accounting, including lack of controls that ensure accounts exist for all water users
and bills are issued or tabulated (even if water is supplied at no cost). This also includes
procedural gaps that allow legitimate water users to exist in “non-billed” status;
All forms of unauthorized use, including tampering with metering equipment, water taken
illegally from fire hydrants, unauthorized taps into service mains or unauthorized
restoration of water service connection valves after violation discontinuance by the water
supplier; and
Weak or non-existent policy, including the often-used practice of not billing/metering
municipal-owned or other public buildings, allowing unrestricted use of fire hydrants, lack
of enforcement of existing statutes, lack of promotion of the value of water, etc.
Figure 24: The Four Component Approach to the Control of Apparent Losses
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10.3.6
Authorized Consumption
Authorized consumption forms an integral part of the water balance calculations. However, the
confirmation of the integrity of the data in the billing database did not form part of this project so
all historical and “snapshot” analysis was carried out on the understanding that the billed
consumption was as accurate as could be provided.
The billing database as provided by ADM was used as the basis for authorized consumption in the
water balance calculations.
10.3.7
Unauthorized Consumption
Unauthorized consumption could contribute significantly to the water balance and potentially
forms the largest component of apparent loss. Unauthorized consumption comprises of both
consumers who have registered connections but have bypassed these illegally as well as those
consumers who do not have registered connections.
In the “top-down” approach of compiling the IWA water balance, the quantification of
unauthorized consumption is very subjective and depends entirely on the operator’s feel for the
system. The simplest way of determining the quantity of unauthorised consumption is to apply a
factor to the entire water losses volume (determined from the water balance by subtracting
authorised consumption from the system input volume).
11.
Non-Revenue Water Reduction Implementation Strategy
11.1 Non-Revenue Water Interactive Model
An interactive spreadsheet has been developed that summarizes the recommended intervention
strategy, anticipated impact of intervention on Non-Revenue Water and economic evaluation of
all recommended interventions. This spreadsheet has been included in Annexure D and has been
designed to act as a stand-alone spreadsheet that encompasses all information and
recommendations contained in this report.
In accordance with the overall brief, the interactive predictive model was developed in Microsoft
Excel that allows flexibility to the Client in determining the output from any number of scenarios
on a per system and overall ADM perspective. This allows for the following to be modelled:
•
•
•
•
•
System Input Reduction modelling (budget-dependent)
Billing Improvement modelling (budget-dependent)
NRW Target establishment, determining target NRW % by volume and budget requirements
Maximum achievable NRW % by volume
NRW target establishment by cost:benefit ratios
Flexibility has been built into the model which allows the cost and impact of a mains replacement
programme to be included in the model or not. As a default for all analysis carried out as part of
this study, the costs and benefit of any mains replacement programme has been excluded.
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11.2 Maximum Achievable Levels of Non-Revenue Water
established as 21% - it will become prohibitively expensive and require a disproportionate
amount of time, resources and budget to achieve any better target than this. Based on the
predictive model that was prepared as part of this investigation, the cost of all interventions
required to realise this target has been determined as approximately R27,6 million when
discounted back to NPV.
11.3 Detailed Intervention Strategy
11.3.1 System Input Volume
The following activities are recommended for specific interventions concerning the System Input
Volumes:
i)
ii)
iii)
All bulk meters at outlets from reservoirs and inlets to supply zones need to be inspected
for accuracy or whether they are in working order. In cases where they are missing, they
should be installed
All reservoir outlet meters (and reservoir levels) should be linked to a central control or
remote server using GSM – based remote logging to enable daily, weekly, monthly and
annual flow profiles/level profiles to be captured and interrogated for use in water
balances. Any anomalies should be alarm-notified to the concerned operatives
automatically.
A replacement schedule to replace bulk and reservoir meters older than 5 years need to be
initiated.
11.3.2 Billed Authorised Consumption
The following activities are recommended for specific interventions concerning the Billed
Authorised Consumption:
i)
ii)
iii)
iv)
v)
vi)
vii)
Installation of two-point controllers on all clusters of standpipes. The controllers will reduce
pressure in the distribution lines to standpipes at times of minimal usage, and increase this
pressure during times of high demand, on a daily basis. It is preferable to install Bermad
Model 720 control valves rather than Bermad Model 710 valves (which initiates a complete
system shut-down). The Model 720 ensures that the system remains charged at all times,
minimising recharge pressure surges that increase leak risks.
All existing connections need to be registered and bills forwarded regularly
Conduct a pilot project on consumer meters that were installed during the early 80s (most
common) to determine their accuracy levels
Ensure billing other government departments/ municipality votes is conducted efficiently
and that the meters are regularly read
All data from new connections need to be registered
Ensure that flow limiters are effective in limiting quotas allocated to individual consumers
Investigate cases of replaced meters still existing in the billing database and clean the same
by removal
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viii)
Investigate all consumers/properties that have zero consumption
The following activities are recommended for specific interventions concerning the Unbilled
Authorised Consumption:
i)
ii)
iii)
Installation of two-point controllers on all clusters of standpipes. The controllers will reduce
pressure in the distribution lines to standpipes at times of minimal usage, and increase this
pressure during times of high demand, on a daily basis. It is preferable to install Bermad
Model 720 control valves rather than Bermad Model 710 valves (which initiates a complete
system shut-down). The Model 720 ensures that the system remains charged at all times,
minimising recharge pressure surges that increase leak risks.
All municipal consumptions must be accurately metered and consumption assigned to the
relevant votes
All unmetered standpipes within the municipality must either be individually metered or
clustered, the meters should be regularly read and bills posted to relevant Departments
The following activities are recommended for specific interventions concerning the Apparent
Losses:
i)
ii)
iii)
Investigate all properties that have not been registered/legally connected – these are
probably illegally connected. If found, legalise connection, install meters and bill.
Monitor zone meters frequently to pick illegal connection volumes
Preparation of a schedule of replacing all faulty meters
11.3.5 Real Losses
The following activities are recommended for specific interventions concerning the Real Losses:
i)
Active Leakage Detection
•
•
•
•
•
ii)
100% inspection and sounding of all water mains, reticulations and connections
Metering of individual pressure zones and online monitoring of the same, with alarm
levels preset
Continuous and intermittent night flow analysis
Identification of operation of the systems
Temporary placement of leakage detection equipment and /or loggers
Pressure Management
•
•
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Conducting extensive pressure logging, monitoring and zoning for the entire ADM
Adoption of new design standards/pressure zones. In this regard, it is recommended
that all existing and future supply zones be designed so as not to exceed 70m static
pressure
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•
•
Installation of intelligent PRVs and flow meters
A PRV maintenance schedule be created and adhered to
11.4 Impact of Non-Revenue Water Reduction Intervention on Water Balance Components
The Intervention strategies will have varied effects on the components of the water balances. In
the following paragraphs the potential reductions in the Non-Revenue Water and System Input
Volumes shall be presented, as will the potential gains in the Billed Authorised Consumptions. The
detailed analyses per system/scheme have been attached in Annexure C hereto.
11.5.1 Real Losses
Any intervention to decrease Real Losses of the entire Amajuba system will decrease the SIV as
well. The current real losses for the entire Amajuba are 751 248 kl/year and the Unavoidable
Annual Real Losses are 115 009 kl/year. The maximum potential for improvement is calculated as
636 239 kl/year.
Through active pressure management together with the implementation of extensive continuous
leak detection and repair exercises, and reduction of response times to pipe burst, it is possible to
reduce the total real loss volume by 580 184 kl/year. This represents a 65,4% reduction in real
losses and has a direct impact on the SIV where a corresponding decrease in volume would be
expected. This loss reduction represents an annual saving of R 1 740 552 in bulk water
production/purchase costs.
The reduction in real loss volume equates to an overall reduction of 0.4m3/hr/km.
The two components of Apparent Losses are Unauthorised Consumption and Meter Inaccuracies.
Implementing a consumer meter installation and registration, in addition to identification of illegal
connections throughout the district could reduce the volume by 83 139 kl/year. This represents an
annual saving of R 249 417 in bulk water production.
UAC consists of Unmetered Municipal Consumption and Unmetered Standpipes. Implementation
of a metering procedure for all municipal consumption and public standpipes would transfer these
volumes to the Billed Authorised Consumption part of the water balance, thus reducing the NRW
by a similar volume.
Implementing these interventions could reduce the UAC by 188 369 kl/year. This represents an
annual saving of R 565 107 in bulk production costs, while transferring this volume to the revenue
water section will result in an increase in revenue of R 1 318 583 (production costs inclusive).
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11.5 Medium-Term Target Water Balance
The individual medium-term water balances have been attached in Annexure C hereto. The
combined medium-term water balance with 95% confidence levels is presented in Table 26, in
comparison with the current entire Amajuba water balance, also with 95% levels grading.
Component
System Input Volume
Apparent Losses
Real Losses
Water Losses
Non-Revenue Water
Inefficiency of water resource use
(%)
NRW by volume (%)
Projected Medium
Term Volumes: With
Intervention
Ml/year
95% CI
1,595
±8.0%
1,256
±10.0%
118
±8.9%
49
±10.0%
171
±7.7%
220
±6.4%
338
±5.2%
11%
21%
Current Water
Balance
Ml/year
1,970
780
306
133
751
884
1,190
95% CI
±5.0%
±5.0%
±9.4%
±49.7%
±7.3%
±9.7%
±7.6%
% Reduction/
Increase
19.0%
61.0%
61.4%
63.2%
77.3%
75.1%
71.6%
38%
60%
Table 26: Entire Amajuba District Intervention Medium-Term Water Balance (Compared to the
current Water Balance) after Completion of the Recommended Intervention Strategies
11.6 Medium-Term Key Performance Indicators
The medium-term key performance indicators after all strategies have been completed within all
the different supply systems/schemes are expected to be as indicated in Table 27.
System
Target CARL
(litres/conn/day w.s.p.)
Target UARL
(litres/conn/day w.s.p.)
Utrecht
Dannhauser
Durnacol
Hattingspruit
78.5
3.3
3.7
13.6
71.0
66.9
70.0
112.3
1.1
0.1
0.1
0.1
Entire ADM
34.6
46.6
0.7
Target ILI
Table 27: Expected Medium Term Key Performance Indicators per System (after Completion of the
Recommended Intervention Strategies)
The combined medium-term Key Performance Indicators are summarised in Table 28 (in
comparison to the current KPIs). All KPI calculations have been compiled and attached in
Annexure C hereto.
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Key Performance Indicator
Current KPI
Value
Projected KPI Value (with
Intervention)
38%
11%
189.86
15.57
520.16
42.67
161.33
12.62
442.2
34.6
30.44
17.01
83.4
46.6
28.48
2.93
78.03
8.04
Infrastructure Leakage Index
5.3
0.7
Financial:
Non Revenue water by Volume (%)
60%
21%
Water Resources:
Inefficiency of use of Water
Resources (RL/SIV) %
Operational:
Water losses
3
(m /service connection/year)
Water losses
3
Unavoidable Annual Real Losses
3
Unavoidable Annual Real Losses
Apparent Losses
3
Apparent Losses
Table 28: Comparison of Key Performance Indicators, Current and after the Completion of
Intervention Strategies
11.7 Benefits of Non-Revenue Water Reduction
The comparison between the current water balance and the medium-term intervention based
water balance can be summarised as follows:
•
•
•
•
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Reduction of System Input Volume by 23,5%
Reduction of Non-Revenue Water by Volume by 351%
Reduction in Unbilled Authorised Consumption by 305%
Increase in Billed Authorised Consumption by 161%.
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11.8 Critical Success/Enabling Factors
In order to ensure the success of this NRW reduction programme and to meet the proposed
targets contained in this Master Plan, there are a number of critical success factors. These were
identified as being:
•
•
•
•
•
•
•
Recognition of NRW reduction as a major focus area of the Water Service Provider and
Water Service Authority by all Client Departments, including and especially Operations
Recognition of the need to have sufficient dedicated internal resources available to be
focused on ensuring the implementation, sustaining, monitoring and evaluation of NRW
reduction intervention
Embracing the principles and objectives as Water Conservation/Water Demand
Management
Securing the requested funding of approximately R28 million over the next five financial
years
Implementing accepted best practice in all aspects of NRW reduction, including
data/information management
Not falling into the trap of treating the NRW reduction interventions proposed in this
Master plan as a once-off capital investment – any intervention has to be sustained and
the ongoing operations and maintenance must be budgeted for and carried out
Focus must be on high impact interventions irrespective of any external (political)
influence that could be brought to bear on the proposed roll-out strategy.
11.9 Targeted Non-Revenue Water Areas of Influence
The model discussed earlier in Section 6 of this report refers. The grading in areas of influence as
have been revised and the new targets have been presented in Table 29 and Figure 25.
Service Delivery Aspect
System Knowledge
Operations
Design
Maintenance
Customer Services
Legal
Finances/Budget
Impact
3
4
4
3
3
3
4
2
Field (Medium-Term)
Influence
Dependency
3
3
4
3
3
3
3
3
3
4
3
3
4
4
2
2
Table 29: Targeted Non-Revenue Water Area of Influence
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Amajuba District Municipality - Strategic NRW Master Plan
Influence of NRW on Other Areas of Operation
System Knowledge
5
4
Operations
3
2
1
Finances/Budget
Design
0
Legal
Maintenance
Customer Services
Field (Baseline) Influence
Field (Target +5 years) Influence
Figure 25: Medium-Term Target Non-Revenue Water Area of Influence
11.10 Overall Economic Analysis
The overall Cost:Benefit ratio for the intervention strategies proposed in the previous sub-sections
is presented in Table 30 (mains replacement has not been included)
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System
Utrecht
Dannhauser
Durnacol
Hattingspruit
Entire
AMAJUBA
Annual
Volume
(Ml)
Annual Cost
based on Bulk
Water
Purchase Price
(R)
Capital Cost
(R)
Annual
O&M Cost
(R)
System Input
Volume
Reduction
Gross
Revenue/
Billed
Volume
Gain
Annual Benefit ( R )
Bulk Water
Purchase Cost
Reduction
Gross
Revenue/
Billed Volume
Gain
849
605
415
101
R 5,943,000
R 4,235,000
R 2,905,000
R 707,000
R 3,226,123
R2,171,289
R 1,303,168
R 317,248
R 106,213
R 80,750
R 79,817
R 4,663
248
66
59
3
155
203
104
14
R 1,726,000
R 462,000
R 413,000
R 21,000
R 1,085,000
R 1,421,000
R 728,000
R 98,000
1.19
1.20
1.21
2.71
1,970
R 13,790,000
R 7,017,828
R 271,443
376
476
R 2,622,000
R 3,332,000
1.22
Table 30: Entire Amajuba District Intervention Cost-Benefit Analysis (Mains Replacement not Included)
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Cost Benefit Ratio
Annual Benefit (Ml)
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12.
Non-Revenue Water Reduction Programme
12.1 Non-Revenue Water Reduction Intervention Work Plan
This Master Plan covers a 5-year period, so it is envisaged that all the recommendations as
proposed in this Master Plan would be implemented within this time frame. However, the roll-out
of the NRW reduction programme is entirely dependent on the available budget. One of the
constraints of preparing this Master Plan was the uncertainty of available budget to determine
intervention activities.
The interactive spreadsheet was therefore changed to allow flexibility in terms of identifying
intervention activities depending on available budget. Once a fixed budget is known then the
activities can be determined. It is not possible to complete this at this stage of the Master Plan, so
a NRW Reduction Intervention Work Plan approach has therefore been recommended. A
proposed template for this document has been included in Annexure E and it is recommended
that the detailed programming and scheduling be included in this document once certainty is
known about available budgets.
12.2 Priority Non-Revenue Water Reduction Interventions
Apart from the uncertainty surrounding available budgets and the subsequent impact on
programme, there are some clear interventions that will offer immediate benefit to ADM. In this
regard, the rezoning of the entire ADM system, particularly in Utrecht and Dannhauser to zones
that will ensure that the maximum static pressures in the reticulation network do not exceed
50m, is the single most important intervention that can be carried out.
As was confirmed in the predictive model, any funding made available up to R1 000 000 should be
dedicated to this intervention.
13.
Funding Strategy
13.1 Funding Requirements
established as 21% - it will become prohibitively expensive and require a disproportionate amount
of time, resources and budget to achieve any better target than this. Based on the predictive
model that was prepared as part of this investigation, the cost of all interventions required to
realise this target has been determined as approximately R27,6 million when discounted back to
NPV.
A cost:benefit curve, based on the predictive model, has been included in both the Master Plan
and spreadsheet model to assist with the determination of the benefit of any NRW reduction
programme based on budget/funding constraints.
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13.2 In-House Resource Development
The funding requirements mentioned in the previous section refer only to the “technical” costs
required to achieve the objectives of this Master Plan and exclude the following costs which were
deemed to be unquantifiable at this stage:
a)
b)
c)
Any organisational costs
Any costs associated with the communication strategy mentioned later
Any resource development costs
With reference to the last item, it is imperative that any resource/official that forms part of the
NRW Section be actively involved in a comprehensive and sustainable skills development
programme. Ideally this should form part of the Workplace Skills Development Plan of ADM. The
following activities are therefore recommended for adoption:
•
•
•
•
Interactive visits and proactive engagement with other National WSA/WSP’s
Interaction with international public sector water utilities
Attendance at relevant training courses as and when held (eg through WISA or WRC)
Development of a Standards and Procedures Manual that can serve both as a Quality
Management System and induction training material
It is recommended that for training sessions and material, and public sector interaction that an
annual budget of R100 000 be put aside for skills development.
14.
Resource Management Strategy
14.1 Option 1 – Current Funding Limitations
It has been assumed that the budgets set aside for current NRW activities will be continued as
Option 1 i.e. current funding limitations. This figure is currently in the order of R1 500 000.
As was stated earlier in the Master plan, currently the management of any NRW activity is
undertaken by two resources, both of whom are situated in the Directorate: Special Projects. It
was deemed imperative that the profile of NRW be elevated to as senior a level as possible within
the Client organisation and that, if possible, dedicated focus on NRW activities be allowed from
this Directorate without distraction from other initiatives – this is a critical part of the success of
the recommendations contained in this Master Plan.
If the current levels of funding remain in effect and are not increased, it is proposed that a
training and mentorship programme be adopted and implemented through the programme
management phase of the roll-out of the NRW reduction interventions with the existing
resources.
However, ADM must be acutely aware of the fact that any NRW reduction intervention is not just
a “once off” programme that can be left aside once the targets have been achieved. System
attrition is a real problem and just as much effort must be focused on sustaining NRW levels as
achieving them in the first place. In this regard, it is strongly recommended that ADM invest in
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resources dedicated to the maintenance of key NRW system components (such as meters and
pressure reducing valves) as well as to the monitoring and evaluation of NRW activities.
The detailed breakdown of responsibility and activities for all resources, both public and private
sector, need to be included in the Work Plan, the template for which has been included in
Annexure E.
14.2 Option 2 – Additional Funding Availability
The requirements for ADM NRW staff based on a larger available budget can only be determined
once the budget is known. However, some guidelines for staff that would need to be resident
inside ADM (excluding administrative support staff) to assist with the successful roll-out of a largescale NRW reduction programme, per water balance component, have been included in Table 31.
Water Balance
Component
Billed
Authorised
Consumption
and
Billed
Authorised
Consumption
and
Real Loss Reduction
Real Loss Reduction
Real Loss Reduction
Real Loss Reduction
Real Loss Reduction
System Input Volume
Focus Area
Monitoring
Evaluation
Level of Staff
Required
and Technician
Number of Staff
Required
N/A
Interaction
with Admin Clerk
Finance and Budgeting
Capital improvements
Maintenance
Monitoring
and
Evaluation, including
Reporting
Active Leak Detection
N/A
Technician
Artisan
Technician
Technician
Assistants
Field measurements
Technician
Bulk
meter Artisan
maintenance
1
1
plus
1 team for entire
ADM
N/A
N/A
Table 31: Guideline ADM NRW Human Resource Requirements for Full-Scale Rollout of NRW
Reduction Programme
The guidelines contained in Table 31 are only guidelines – it is assumed that a full work study
would need to be completed prior to any such changes to the current organisational structure
taking place. The guidelines do also not take into account that the roll-out programme may only
have a duration of five years.
14.3 In-House Resource Development
With reference to resource development, it is imperative that any resource/official that forms
part of the NRW Section be actively involved in a comprehensive and sustainable skills
development programme. Ideally this should form part of the Workplace Skills Development Plan
of ADM. The following activities are therefore recommended for adoption:
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•
•
•
•
•
15.
Interactive visits and proactive engagement with other National WSA/WSP’s
Interaction with international public sector water utilities
Attendance at relevant training courses as and when held (eg through WISA or WRC)
Development of a Standards and Procedures Manual that can serve both as a Quality
Management System and induction training material
Development of customised accreditation criteria, such as for leak detection, that allows
for Client assurance in a quality product.
Quality Assurance and Performance Management
Quality Assurance plays an important role in the implementation of any NRW reduction
programme and without a Quality Management System in place which is actively monitored by
the Client, the desired impact on NRW levels may not be achieved. Quality assurance applies just
as much to the Client organisation as it does to any external service provider.
Quality Assurance plays an important part in the Work Plan, which serves as a detailed breakdown
of activities, roles and responsibilities, although this can only be addressed with the required
attention to detail once the actual work packages have been determined.
However, as mentioned in the previous section, the development of a Standards and Procedures
Manual would be an invaluable tool for both ADM NRW Staff, Operations staff and any external
service provider.
Furthermore, it is also recommended that an independent Water Auditor be appointed as part of
the overall quality assurance framework to verify any reporting and results achieved through the
NRW reduction programme.
The introduction of a Quality Management System needs to be underpinned and supported by a
Performance Management System. A performance management system is based on the following
drivers/indicators, as presented in Figure 26:
Key Result Areas (KRA’s): the ultimate objective or result of the programme. These may be
technical (eg targeted level of NRW) or non-technical (eg verified, skilled personnel or fully
implemented records system)
Key Performance Measures (KPM’s): these are manipulations of KPI’s to present some measure of
progress or performance
Key Performance Indicators (KPI’s): these are factual numbers that represent an indicator selected
as part of the programme
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Figure 26: Example Components of a NRW Performance Management System
16.
Monitoring and Evaluation
16.1 Monthly Reporting Requirements
As part of the QMS mentioned in the previous section, a fairly rigid monthly reporting system will
need to be implemented in order for progress to be recorded. The monthly reports will need to
communicate progress to various roleplayers and will need to include the following items:
•
•
•
•
•
•
•
•
Water balances for month and year-to-date
Physical progress on NRW reduction activities
Progress against targets
Key Performance Indicators – actual and trend
Budget and expenditure
Identification of challenges
Success stories
Recommended changes to intervention strategy
A proposed template for the monthly report has been included as Annexure F.
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16.2 Annual Reporting Requirements and Programme Review
As will be discussed in the following sections, it is recommended that an independent Water
Auditor be appointed as an external roleplayer, one of whose primary responsibilities will be the
production of a quarterly/annual Water Audit Report. It is envisaged that the Water Audit Report
will be more of an administrative or legislative requirement and will not get into a huge amount of
technical detail.
To supplement the Water Audit Report, it is envisaged that an Annual NRW report will be
produced within the framework of this Master Plan and any Work Plan developed arising from
this Master Plan. This report would serve both as a factual report of activities carried out within
the financial year, provide figures necessary for the Water Audit Report and provide a review of
the strategy and programme.
17.
Risk Management
The targets mentioned and recommended as part of this Master Plan are subject to a number of
risks that may occur outside of the control of the Directorate: Special Projects. The targets stated
as part of this Master Plan will only be achieved under ideal conditions and within an enabling
framework as discussed earlier.
Annexure G therefore contains a standard risk management schedule that identifies and
evaluates any risk associated with the implementation of the recommended NRW reduction
activities (likelihood/probability, consequence/impact and ranking), as well as includes a proposed
risk mitigation strategy/measures with clearly identified responsibilities.
18.
Communication Management
Part of the successful implementation of a NRW reduction programme would be the
implementation of a comprehensive communications strategy that is focused on the following
roleplayers both inside and outside ADM:
•
•
•
•
•
•
ADM – Area Managers and Operations staff
ADM – senior management
ADM – Exco and Councillors (including various standing committees)
ADM – marketing and public relations
Customers
Water Service Authorities
A Communications Plan has been included in Annexure H.
19.
The key conclusions and recommendations contained in this Master Plan are summarised as
follows:
•
It is unrealistic for ADM to set a medium-term target of less than 21% by volume
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•
•
•
•
•
•
•
An economically optimal target is 21% NRW by volume within a budget of approximately
R28 million (including any mains replacement)
An annual operations budget of at least R500 000 per annum be set aside to ensure the
sustainability of all pressure management intervention as well as targeted leak detection
and repair activities
The largest impact on NRW volumes is pressure management in Utecht. Any available
budget up to R1 million should be used for this purpose
New design standards must be formalised and implemented (new pressure regimes,
pipe material, etc)
All unmetered connections, including all currently unmetered standpipes, must be
metered and registered as connections as a matter of urgency
The internal profile of Non-Revenue Water reduction and the Directorate: Engineering
Services must be raised to such a level as to demonstrate corporate and operational
support and buy-in. Without this, the success and impact of the entire programme may
be compromised
The recommendations as contained in this Master Plan for the roll-out of the NRW
reduction interventions be approved for implementation
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jc200807h003 nrw master plan v1 0

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